Next buys collapsed made.com for £3.4 million
And could make that money back within a year in just organic traffic!
Next just bought Made.com, the collapsed online furniture retailer for £3.4 million ($3.9 million). Last year made.com was valued at £775 million ($909 million), after it floated on the stock market in June 2021. Since then, shares in Made.com have tumbled from a listing price of 200p to below 1p. Next has stepped in, collecting the broken parts of the furniture business, as all 573 of their staff are laid off and the majority of outstanding orders remain unfulfilled.
Next has a large home and furniture business, so the move makes sense. Moreover the url made.com itself has to be worth a fair amount. A closer look into Next and made.com’s online search efforts adds more colour to the picture.
made.com currently gets 1.8 million monthly visitors organically from Google. That’s around 20 million yearly visits (for free). This is because made.com is ranking for around 600k keyword search terms on Google.
Next currently spends £79K ($90K) per month on paid search and is getting 210K visitors. This works out at about 37p ($0.43) per click. This means just the organic traffic from made.com could be worth more than £8.5 million to Next in the first year.
It will be interesting to see what Next does next with Made.com, i’ll be keeping an eye out!