Full price sales at Next increased by 6% in the final two months of 2024, adding £27mn, and allowing the retail giant to up its guidance once more to £1.01bn. However, the retailer is preparing for rising wages and National Insurance costs.
While ecommerce sales in the run up to Christmas remained strong – up 3.8% – physical retail was down 2%, with Next contending with “the timing of the end-of-season Sale”.
Looking ahead, Next has warned that any further UK growth is likely to be impacted by recent government announcements. It predicts it will spend an additional £67mn on the cost of wages. This change is driven by a combination of general wage inflation, the increase in the National Living Wage, the decrease in Employer National Insurance (ENI) threshold, and the increase in the ENI headline
rate.
Next stressed that it can save around £23mn through improved working practices and other operational efficiencies in our warehouses, distribution networks and stores.
The retailer, which has roots stretching back to the 1864 founding of J Hepworth & Sons, has reinvented itself throughout its history. A company profile in the UK Top500 looks at how it is currently prospering as a multichannel brand, selling its own Next clothing and homewares, both online and through more than 500 stores in the UK and Ireland.
Read the full Next profile in the RetailX UK Top500 report. Amazon, Ikea, Asda, Dunelm, Boden, Richer Sounds and Very are also looked at in detail.
The wider report includes a strategic overview of the UK retail sector; an interview with Sue Harries of Elite retailer Screwfix and analysing the UK Top500 – why are these retailers so good.
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