Matt Clark, EMEA Leader, Retail and Partner & Managing Director at AlixPartners, comments on Next PLC Half Year Results:

“Next’s half-year results build on an impressive run and show the retailer successfully maintaining momentum following last year’s record high profits. Next and its CEO Simon Wolfson have a history of setting low expectations that can create a positive spin when beaten, but this does not diminish Next's performance in what is a very challenging market.

“Over the past 18 months, Next has increased its stake in other brands such as Reiss and FatFace, reflecting its confidence in quality brands and long term consumer resilience. The business model of brand ownership in combination with the Next Total platform underpins their success. Indeed, with UK retail currently flat, the growth reported today is largely owed to international sales, owned brands and the Total platform.

“In fact , there is much for others to learn from how Next has navigated external pressures on consumer spending habits, driving a change in business model into more of a tech platform-based ecosystem business than a stores-based apparel retailer.  This strategic positioning makes the retailer more resilient and makes it well placed to drive further consolidation of the market whilst competitors struggle.  

“Next’s results are another sign that you need to adapt to survive and thrive in the face of continuing disruption. Winners of the future are taking bold steps today to be fit for the future.”

For further information, please contact Matt Clark, EMEA Leader, Retail and Partner & Managing Director.