What: Next is to open a department store in all but name as it transforms its existing sites in the Atria centre in Watford in the UK.

Why it is important: The company will bring together its fashion, beauty and home ranges in a single store for the first time as it merges two locations in the Hertfordshire mall. It's unknown yet whether it will replicate this model elsewhere.

Opening in April, the new store will cover almost 95,000 sq ft across three floors. And next door, there will be a 4,500 sq ft Victoria's Secret branch that will be accessed from the Next location as well as having its own entrance.

Clearly, the converted and extended space will feature many categories found in a traditional department store. The retailer has developed and expanded on its business model in recent years to become a major seller of third-party brands, added categories and become an operator of stores for other labels, both physical and digital.

The evolution comes as M&S has also been pivoting to sell more third-party brands and to offer more categories in its existing stores. Such changes make good commercial sense for both businesses.

Next creates a 'department store'