Next is one of the UK’s largest fashion and home retailers, with almost 470 UK stores and annual sales passing the £5bn mark for the year to end January 2023 (FY2022).
Its well-established omnichannel model and enviable ecosystem allow it to react with agility to changing customer demands, while bold investment in both its stores and online operations is paying off as it caters to consumers’ increasingly channel-agnostic shopping habits.
Group sales rose 8.8% to £5,034m on a statutory basis in FY2022. Store sales have recovered to pre-pandemic levels, while online sales – although edging down year-on-year – were 40% ahead of FY2020.
Store sales had been on a downward trend ahead of the pandemic but as consumer spend has shifted back to the high street post-pandemic, Next’s investment in new formats, such as its Beauty Hall concept and department store-style shops, is paying off with new formats including Made shop-in-shops broadening its offer and extending its appeal.
Next has invested in the ecommerce infrastructure to remain competitive in an increasingly saturated online fashion market. Through its omnichannel focus it has maximised the online value of its stores through increased integration, improved cross-channel user experience, and targeted marketing and personalisation.
Building revenue streams, Next is servicing third-party brands through Total Platform, which allows other brands to use its online software and infrastructure. Total Platform has also created an opportunity for strategic stake building in brand partners - Next recently bought Made, Joules and Cath Kidston out of administration, as well as acquiring fashion brand FatFace.
Even amid a volatile macroeconomic trading environment, fashion giant Next is boldly seeking growth, building its third-party brand partnerships and exploring opportunities for expansion overseas.