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Next plc

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Next plc
Next
FormerlyJ Hepworth & Son (1864–1982)
Company typePublic limited company
LSE: NXT
FTSE 100 Component
ISINGB0032089863 Edit this on Wikidata
IndustryRetail
Founded1864; 160 years ago (1864)
Leeds
FounderJoseph Hepworth
HeadquartersEnderby, England, UK
Number of locations
c. 500 stores (2018)[1]
Area served
Key people
BrandsVictoria's Secret UK
Gap UK
Joules
Cath Kidston
FatFace
Made.com
RevenueIncrease £5,034.0 million (2023)[2]
Increase £941.5 million (2023)[2]
Increase £710.7 million (2023)[2]
Total assetsIncrease £3,983.8 million (2023)[2]
Total equityIncrease £1,165.1 million (2023)[2]
OwnerNext Holdings Limited
Number of employees
46,710 (2023)[2]
SubsidiariesJoJo Maman Bébé (44%)
Reiss (72%)
Websitewww.next.co.uk

Next plc, trading as Next (styled as NEXT) is a British multinational clothing, footwear and home products retailer, which has its headquarters in Enderby, England.[3] It has around 700 stores, of which circa 500 are in the United Kingdom, and circa 200 across Europe, Asia and the Middle East.[1] Next is the largest clothing retailer by sales in the United Kingdom, having overtaken Marks & Spencer in early 2012[4] and 2014.[5] It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History

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Hepworth

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The company was founded by Joseph Hepworth in Leeds in 1864 as a tailor under the name of Joseph Hepworth & Son.[6] Initially Hepworth was in partnership with James Rhodes, but the partnership was dissolved in 1872.[7]

On his own, Hepworth expanded the company rapidly, becoming a pioneer of the development of chain stores in Britain. By 1884 the company had 100 outlets.[8]

For much of its history Hepworth was predominantly in the ready-to-wear suit market.[9] In 1963, the company brought in the celebrated Savile Row designer Hardy Amies to help revitalise its ready-to-wear suit collection.[10]

Kendall's and Next

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In 1981, the company bought womenswear retailer Kendall & Sons for £1.75 million from the retail conglomerate Combined English Stores. This gave Hepworth over 600 shops in British high streets.[11]

The intention was to redevelop Kendall's stores as a womenswear chain of shops to complement Hepworth as a chain of menswear stores. Designer Terence Conran was Chairman of Hepworth at that time, and recruited George Davies to work at Kendall's. However, Davies's concept was to create a new chain, called Next, initially by converting Kendall's stores. The first Next shops opened on 12 February 1982, with the Kendall's conversion complete by the end of 1983.[6]

A branch of Next showing the old logos on Oxford Street in London in 2005

Appointed chief executive in 1984, Davies then converted 50 Hepworth stores to the Next format, extending the range to cover menswear. This allowed the development of mini department stores selling women's and men's clothes. This was added to by the introduction of Next interiors to stores which were deemed in the "right demographical areas." In 1986, Davies moved the group's headquarters from Leeds to Leicester, to be closer to the main garment manufacturers, and the company name was changed to Next plc.[6]

In 1987, the group acquired Combined English Stores and the Grattan catalogue company. Extending first to introduce Next childrenswear, Davies then introduced the Next Directory.[12][13]

By 1988, "after seven years of growth, Next had over-expanded suicidally" .. "some stores were not bringing in enough to pay the rent."[14] Davies was sacked and the share price fell to 7p.[14] Chairman Sir David Jones accused Davies of being egotistical and taking Next to the verge of bankruptcy.[15]

Next at Manchester Arndale
Next at Trinity Leeds

In October 1988, Next sold 433 jewellery stores in the United Kingdom, which principally traded under the Salisburys and Zales brands, to the Ratners Group for US$232 million.[16]

The company bought the youth brand Lipsy in 2008.[17] In autumn 2009, Next launched an online catalogue for the United States offering clothing, shoes and accessories for women, men and children.[18]

Next's prices in Ireland attracted criticism in 2009 when the company was one of four retailers accused of failing to pass on exchange rate savings to shoppers in the Republic.[19]

In July 2010, a BBC investigation found Next was breaking the Consumer Protection (Distance Selling) Regulations 2000 by billing customers for its delivery costs even if goods were returned within the seven working days.[20] A spokesman for Next admitted that they had been doing this for three years but promised to comply by August 2010.[20] Trading Standards said that the DSRs had been in force for ten years, and there was no excuse for not adhering to them.[20]

In 2014, Next launched localised cross-border sales to Ukraine.[21]

Wages controversy

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In May 2014, the Living Wage Foundation bought Next shares and attended the annual general meeting in an attempt to persuade the company to pay at least £6.70 and become one of the UK's 700 living wage employers. Next was targeted because it claimed to be a good employer and was thriving. Professor Sir George Bain, who set the minimum wage in 1999, said employers could afford to pay much more but acknowledged enforcement could cause unemployment in the retail sector.[22]

In October 2014, the company was one of several retailers criticised by journalist Janice Turner in The Times for failing to pay what she described as a living wage. Turner further argued UK taxpayers pay £28 billion to low-paid workers through tax credits, and retail companies – which have the highest proportion of low paid workers – are exploiting austerity and effectively adding staff wages to the UK welfare bill. When asked to explain the salaries of lower-wage workers despite large profits, a Next spokesperson replied that the company had thirty applicants for every job advertised.[23]

Next At Exeter.
Next at Exeter

Recent history

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In September 2018, the company's Irish operations profits were separated from Next plc.[24] Next (Ireland) Ltd was formally established to focus on the distribution of products in its physical stores and its online store in the Republic of Ireland. At the same time Next Germany was established.[25]

In November 2022, it was announced Next had acquired the London-headquartered furniture retailer, Made.com - which (in the same month) had gone into administration.[26]

In December 2022, the company entered into a joint venture with Tom Joule to buy The Joules Group out of administration for £34 million.[27] Tom Joule retained 26% of the equity in the business.[28]

In March 2023, it was announced Next had acquired vintage fashion and homeware retailer Cath Kidston out of administration for £8.5 million.[29] The acquisition meant Next had bought the brand name, domain names and intellectual property, but remaining stock was to be sold off by administrators and the four Cath Kidston stores (London, York, Ashford, Cheshire Oaks) were to shut.[30]

The company makes use of Uyghur forced labour provided by the China based supplier, Beijing Guanghua Textile Group, according to research of the Helena Kennedy Center for International Justice, the socialists and democrats in the European Parliament and further institutions published in December 2023. [31]

Operations

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Next has three main channels: Next Retail, a chain of 550+ retail branches in the United Kingdom; Next Directory, a home shopping catalogue and website with more than 3 million active customers, and Next International, with 180+ international stores.[3] Its other businesses include Next Sourcing, for own brand products; Lipsy, which designs and sells its own branded younger women's fashion products through wholesale, retail and website channels.[3]

Next operates stores and e-commerce for Victoria's Secret in the UK.[32] In September 2021, Next announced a joint venture with Gap. Next will manage Gap's UK website and place Gap concessions in some Next stores. The deal preserves Gap's presence on the UK high street after Gap announced in July 2021 it would close all of its UK stores.[33]

Financial data

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Numbers are in millions of pounds:

Financial
year ended 		Revenue Net Income Number
of stores 		Reference
Total In stores Online
January 2023 5,034 2,289.8 2,744.2 710.7 466 [2]
January 2022 4,626 1,751.5 2,874.4 677.5 477 [34]
January 2021 3,284 954.5 2,368.4 286.7 491 [35]
January 2020 4,362 1,851.9 2,146.6 593.9 498 [36]
January 2019 4,211 1,955 1,918.8 590.4 507 [37]
January 2018 4,118 2,123 1,728.5 591.8 528 [38]
January 2017 4,137 2,305 1,728 635.3 538 [39]
January 2016 4,214 2,406 1,688 666.8 540 [40]
January 2015 4,028 2,348 1,541 634.9 539 [41]
January 2014 3,758 2,241 1,374 553.2 541 [42]
January 2013 3,548 2,191 1,193 473.1 540 [43]
January 2012 3,441 2,191 1,089 474.8 536 [44]
January 2011 3,293 2,222 936 400.9 525 [45]
January 2010 3,406 2,274 873 364.0 517 [46]

Logos and marketing

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Next logo used from 1991 to 2007
Next logo used from 2007 to March 23rd, 2022

Until circa 1991 Next used a lower case Courier-style typeface in black against a white background for its logo. This was replaced by the capitalised NEXT logo in a Roman-serif style type face. There were some variations of this such as the logo with each letter of NEXT in an individual square and in some stores in 2005/2006 had the Next logo in a varying blue & black background with "X's" printed on them, as opposed to the black background. In addition, some variations in typeface occurred during the logo's use – including similar fonts that had serifs positioned above the "T" crossbar, similar to Garamond and others that had more in common with Times New Roman. In 2007 a new next logo was introduced, although the previous logo continued to be used until stock was exhausted.[47]

Next clothing often carries reference to the origins of the company in 1982 with use of "82" or "1982" as a design feature on clothes in all ranges.[48]

Prior to 2007 Next only advertised immediately prior to a sale, usually through brief television spots and newspaper advertising. In 2007 following a "disappointing" 7.2% fall in like for like sales, it announced it was investing "£17 million over the next three years to revive its existing stores and product offering" + an additional £10m for marketing.[49] Yasmin Le Bon who modelled in the first Next Directory in Spring 1988 featured in an on-line fashion show.[49]

In September 2007, to celebrate its 25th anniversary, Next launched its first television campaign in twelve years named 'Ali's Party' with the song 'Suddenly I See' and starring Brazilian supermodel Alessandra Ambrosio.[50] All extra casts were Next employees, otherwise nicknamed 'nextras'. A second advert featuring Ambrosio, was screened in November 2007 and the songs were regularly played instore during the campaign.[51]

An advert directed by Ben Watts and filmed on the banks of the River Seine was shown in September 2010 to reflect the season's Parisian chic styles. It was soundtracked by The Specials’ "A Message to You, Rudy" and starred Brazilian model Emanuela de Paula and Spanish actor Jon Kortajarena.[52]

See also

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References

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  1. ^ a b "At a glance". Next plc. Retrieved 10 March 2019.
  2. ^ a b c d e f g "Annual Report for the year ended January 2023" (PDF). Retrieved 11 February 2024.
  3. ^ a b c "Next Plc NXT:LSE Company Description". Financial Times. 12 January 2011. Retrieved 12 January 2011.
  4. ^ "M&S Loses Britain's Largest Clothing Retailer Title to Next". Bloomberg. 29 June 2012. Retrieved 25 November 2012.
  5. ^ "Next profits overtake M&S for first time". The Telegraph. 20 March 2014. Archived from the original on 12 January 2022. Retrieved 25 March 2014.
  6. ^ a b c "Next history". Nextplc.co.uk. Retrieved 12 October 2010.
  7. ^ The London Gazette, 9 July 1872, p.3121
  8. ^ John Timpson, High Street Heroes: The Story of British Retail in 50 People (London: Icon Books, 2015)
  9. ^ Ugolini, Laura (2007). Men and Menswear: Sartorial Consumption in Britain 1880-1939. Aldershot: Ashgate. p. 193. ISBN 978-0754603849.
  10. ^ Alison Adbergham, "View of Fashion", The Guardian, 8 October 1963, p. 8
  11. ^ Rosemary Unworth, "Hepworth Buys CES Offshoot", The Times, 12 May 1981, p. 18
  12. ^ Alexander, Hilary (15 May 2009). "Woodstock theme for 21st Anniversary of Next Directory". The Daily Telegraph. London. Archived from the original on 21 May 2009.
  13. ^ "Next Directory – a background history on Next". Thecatalogshop.co.uk. Retrieved 12 October 2010.
  14. ^ a b Davies, George (15 October 1995). "Return of the fashion maverick". The Independent. UK. Archived from the original on 18 June 2022. Retrieved 12 October 2010.
  15. ^ Cave, Andrew (30 May 2010). "George Davis to open 60-branch chain in Gulf". Daily Telegraph. UK. Archived from the original on 12 January 2022. Retrieved 30 May 2010.
  16. ^ "Next P.L.C. to Sell Stores to Ratners". The New York Times. 12 October 1988. Retrieved 20 April 2013.
  17. ^ "Next splashes £17m on youth brand Lipsy". TheGuardian.com. 3 October 2008. Retrieved 25 November 2012.
  18. ^ "Next Direct". Next Direct. Retrieved 12 October 2010.
  19. ^ "Price is still not right". The Irish Times. 12 January 2009. Retrieved 12 October 2010.
  20. ^ a b c Susannah Streeter (9 July 2010). "Next breaks refund rules for online deliveries". BBC News. Retrieved 30 August 2010.
  21. ^ "UK fashion retailer Next launches localized cross-border sales to Ukraine". 20 November 2014. Retrieved 26 March 2016.
  22. ^ "Living Wage Foundation buys Next shares and protests at meeting". BBC News. 15 May 2014. Retrieved 10 March 2015.
  23. ^ Janice Turner (4 October 2014). "Don't make me pay your staff, Sainsbury's". The Times. Retrieved 19 October 2014.
  24. ^ "Next creates Irish firm as part of no-deal Brexit plan". RTÉ. 25 September 2018.
  25. ^ Reddan, Fiona. "Next sets up new Irish company to avoid Brexit customs and duties". The Irish Times.
  26. ^ Roberts, Lauretta (9 November 2022). "NEXT acquires collapsed furniture retailer Made.com". TheIndustry.fashion. Retrieved 9 November 2022.
  27. ^ "Next rescues Joules from administration, saving 100 shops and 1,450 jobs". The Guardian. 1 December 2022. Retrieved 6 December 2022.
  28. ^ Eley, Jonathan (1 December 2022). "Next buys Joules out of administration for £34mn". Financial Times. Retrieved 23 August 2023.
  29. ^ Cahill, Helen. "Cath Kidston bagged by Next for £8.5m" – via www.thetimes.co.uk.
  30. ^ "Next buys Cath Kidston for £8.5m - resulting in job cuts". Sky News. 28 March 2023. Retrieved 28 March 2023.
  31. ^ Tailoring Responsibility: Tracing Apparel Supply Chains from the Uyghur Region to Europe (PDF). Uyghur Rights Monitor, the Helena Kennedy Centre for International Justice at Sheffield Hallam University, and the Uyghur Center for Democracy and Human Rights. December 2023. p. 20.{{cite book}}: CS1 maint: date and year (link)
  32. ^ "Next consortium in pole position to buy Philip Green's Topshop empire". The Guardian. 17 January 2021. Retrieved 26 February 2021.
  33. ^ "Next deal keeps Gap brand alive in the UK". BBC News. 17 September 2021. Retrieved 17 September 2021.
  34. ^ "Annual Report for the year ended January 2022" (PDF). Retrieved 14 February 2023.
  35. ^ "Annual Report for the year ended January 2021" (PDF). Next plc. Retrieved 15 February 2022.
  36. ^ "Annual Report for the year ended January 2020" (PDF). Next plc. Retrieved 30 April 2020.
  37. ^ "Annual Report for the year ended January 2019" (PDF). Next plc. Retrieved 28 February 2020.
  38. ^ "Annual Report for the year ended January 2018" (PDF). Next plc. Retrieved 28 February 2020.
  39. ^ "Annual Report for the year ended January 2017" (PDF). Next plc. Retrieved 28 February 2020.
  40. ^ "Annual Report for the year ended January 2016" (PDF). Next plc. Retrieved 28 February 2020.
  41. ^ "Annual Report for the year ended January 2015" (PDF). Next plc. Retrieved 28 February 2020.
  42. ^ "Annual Report for the year ended January 2014" (PDF). Next plc. Retrieved 28 February 2020.
  43. ^ "Annual Report for the year ended January 2013" (PDF). Next plc. Retrieved 28 February 2020.
  44. ^ "Annual Report for the year ended January 2012" (PDF). Next plc. Retrieved 28 February 2020.
  45. ^ "Annual Report for the year ended January 2011" (PDF). Next plc. Retrieved 28 February 2020.
  46. ^ "Annual Report for the year ended January 2010" (PDF). Next plc. Retrieved 28 February 2020.
  47. ^ "Next rebrands". Intangible Business. March 2007. Retrieved 9 April 2017.
  48. ^ "Example 1982 branding". Next. Archived from the original on 14 February 2009. Retrieved 26 March 2016.
  49. ^ a b "Next launch on-line catwalk". Fashionunited.co.uk. Retrieved 12 October 2010.
  50. ^ "Welcome to the new". Mad.co.uk. Retrieved 26 November 2012.
  51. ^ "Alessandra Ambrosio Next UK Christmas TV commercial". YouTube. Archived from the original on 22 December 2021. Retrieved 9 April 2017.
  52. ^ "Next Christmas 09 – Emanuela de Paula, Nathan Bogle and Amy Hixon". Beauty Confessional. 3 December 2009. Archived from the original on 3 September 2012. Retrieved 26 November 2012.
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