- Next has announced a drop in profits after facing its “most challenging years for 25 years,” it was reported today – will it affect your local branch?
- The high street retailer is said to be struggling after its most challenging year yet, according to chief executive Lord Simon Wolfson.
- It is possible the profit drop may coincide with store closures, as was the case recently with New Look closing 26 stores across the country.
Profits have dropped 8.1 per cent to £726.1 million pre-tax, and sales have dropped 0.5 per cent to £4.1 billion, cushioned by the retailer’s online sales.
The high street retailer said a “difficult clothing market” coupled with a shift in buying habits from stores to online had presented “challenges”.
“In many ways 2017 was the most challenging year we have faced for 25 years,” said Next chief executive Lord Simon Wolfson.
“A difficult clothing market coincided with self-inflicted product ranging errors and omissions.
“At the same time, the business has had to manage the costs, systems requirements and opportunities of an accelerating structural shift in spending from retail stores to online.
“Whilst it has been an uncomfortable year it has also prompted us to take a fresh look at almost everything we do.”
“As a result of these endeavours, many challenges and opportunities have emerged.”
Next added this could mean introducing restaurants, cafes and other concessions to generate additional revenue and footfall in its shops.
High street chains Marks & Spencers and John Lewis have added cafes in their stores to great success in the past.
This is not the only high street chain in danger of store closures. Earlier this week, Express.co.uk reported Next UK store closures of 60 branches around the country.
The UK store closures will take place over the next 12 months, with some staff already working there deployed to different locations.
Closures will happen in store locations across the countries, from the Cardiff store in Wales to Borehamwood store in Hertfordshire.
The retail chain will also cut 1,000 jobs across their workforce in a bid to resolve financial issues, bosses have revealed.
Marks and Spencer also announced store closures earlier this year in January.
A spokesperson for the company said the closure is part of M&S’s programme to modernise its UK store estate to better meet the changing needs of customers.
Express.co.uk have contacted Next PLC representatives for a statement regarding the profits drop.
