Next is reportedly planning an acquisition or at least taking a stake in family-owned shoe retailer, Russell & Bromley.

Sky News reported that the fashion retailer, which has a market capitalisation of £16.6bn, is among a number of firms in talks with Russell & Bromley’s advisers about a deal.

The shoe retailer, which was formed in 1880, currently trades across 37 stores and employs more than 450 people.

The potential takeover comes after Russell & Bromley confirmed several weeks ago that it had drafted in advisory firm, Interpath, to explore options for raising new financing for the business.

Head of markets at AJ Bell, Dan Coatworth, said a possible deal would expand Next’s “ever-growing portfolio of brands” that have gone through a difficult period.

He added: "Next has shown a keen interest in buying brands at knockdown prices or investing in retailers that have lost their way. It hooks them up to its Total Platform system, running their logistics, e-commerce and returns services, thereby hoping to make them more efficient entities.

"Adding a shoe retailer to its portfolio makes a lot of sense. So far, it has bought clothing, lingerie and furniture brands – all complementary to Next’s core business. Footwear is the missing piece of the puzzle. A lot of Next’s success is down to having a well-oiled machine, with a close eye on costs, logistics and inventory.

"In recent years it has offered third party products as well as its own, giving shoppers more choice. Fundamentally, it wants someone to go on its website and buy a product – whether that’s a Next branded one, or a third-party item. It stands to make money whatever the customer buys."

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