Next plc

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Next
Formerly called
 Joseph Hepworth & Son (1864-1982)
Public limited company
Traded as LSE: NXT
Industry Retail
Founded 1864; 160 years ago (1864)
Leeds
Founder Joseph Hepworth
Headquarters Enderby, Leicestershire, England, United Kingdom
Number of locations
 circa 700 stores (2011)
Key people
 John Barton[1]
(Chairman)
Simon Wolfson[1]
(Chief Executive)
Revenue £3,999.8 million (2015)[2]
£812.1 million (2015)[2]
Profit £634.9 million (2015)[2]
Number of employees
 52,533 (2014)[3]
Website www.next.co.uk

Next (LSE: NXT), styled as next, is a British multinational clothing, footwear and home products retailer headquartered in Enderby, Leicestershire.[4] It has around 700 stores, of which 502 are in the United Kingdom and Ireland,[5] and around 200 are in continental Europe, Asia and the Middle East. Next is the largest clothing retailer by sales in the United Kingdom, having overtaken Marks & Spencer in early 2012[6] and 2014.[7] It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

History

The company was founded by Joseph Hepworth in Leeds in 1864 as a tailor under the name of Joseph Hepworth & Son.[8]

In 1982 Hepworth & Son acquired Kendall & Sons Ltd, a Leicester-based rainwear and ladies fashion company from Combined English Stores. The intention was to redevelop the Kendall's stores as a womenswear chain of shops. Terence Conran, the designer, was Chairman of Hepworth's at this time and he recruited George Davies, who went on to become Chief Executive of Next.

The first Next shops opened on 12 February 1982, with the Kendall's conversion complete by the end of 1983.[8]

A Next store in an old building, Canterbury, England (in 2004)

Made chief executive in 1984, Davies then converted the 50 Hepworths stores to the Next format, extending the total concept look at the same time to cover menswear. This allowed the development mini department across the entire footprint, 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 groups headquarters from Leeds to Leicester, to be closer to the main garment manufacturers, and the company name was changed to Next plc.[8]

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.[9][10]

By 1988, "after seven years of growth, Next had over- expanded suicidally" .. "some stores were not bringing in enough to pay the rent."[11] Davies was sacked and the share price fell to 7p.[11] Chairman Sir David Jones, accused him of being egotistical and taking Next to the verge of bankruptcy.[12]

The Next store in the Manchester Arndale

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.[13]

The company bought the youth brand Lipsy in 2008.[14] In Autumn 2009, Next launched an online catalogue for the United States offering clothing, shoes and accessories for women, men and children.[15]

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.[16]

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.[17] A spokesman for Next admitted that they had been doing this for three years but promised to comply by August 2010.[17] Trading Standards said that the DSRs had been in force for ten years, and there was no excuse for not adhering to them.[17] "Although the majority of businesses...are law-abiding, there is a small minority that are not and those are the companies we need to take action against."[17]

In 2014, Next launched localized cross-border sales to Ukraine [18]

Next sales fell by 0.5% immediately prior to Christmas 2015, disappointing the City. Whilst Directory sales increased by 2%, this was described as "lacklustre" compared with the previous year, and this was blamed on poor stock availability. Analyst Tony Shiret said the weak figures caused surprise even after accounting for the "relatively unattractiveness of Next's customer credit offer.[19]


Living Wages

In May 2014 the Living Wage Foundation bought Next shares and attended the Annual 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.[20] In October 2014, the company was one of several retailers criticised by Janice Turner in The Times for failing to pay a living wage. UK taxpayers pay £28billion to low paid workers and Turner says 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 why, despite record profits their lowest paid workers were so poorly paid, Next replied that they had 30 applicants for every job advertised.[21]

Operations

Next has three main channels: Next Retail, a chain of 500+ retail branches in the United Kingdom and Ireland; Next Directory, a home shopping catalogue and Website with more than 3 million active customers, and Next International, with 180+ international stores.[4]
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.[4]

Logos and marketing

File:Next former logo.png
The Next logo used from 1991 to 2007

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 2005/6 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.
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.[22]

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.[23] Yasmin Le Bon who modelled in the first Next Directory in Spring 1988 featured in an on-line fashion show.[23]

In September 2007, to celebrate its 25th anniversary, Next launched its first television campaign in 12 years named 'Ali's Party' with the song 'Suddenly I See' starring Brazilian supermodel Alessandra Ambrosio.[24] 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.

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.[25]

Stores

References

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  4. ↑ 4.0 4.1 4.2 Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ http://www.nextplc.co.uk/~/media/Files/N/Next-PLC/pdfs/reports-and-results/2014/NEXT%20Annual%20Report%202015%20FINAL%20Web.pdf
  6. ↑ Lua error in package.lua at line 80: module 'strict' not found.
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  8. ↑ 8.0 8.1 8.2 Lua error in package.lua at line 80: module 'strict' not found.
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  11. ↑ 11.0 11.1 Lua error in package.lua at line 80: module 'strict' not found.
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  17. ↑ 17.0 17.1 17.2 17.3 Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ http://uadn.net/2014/11/20/uk-fashion-retailer-next-launches-localized-cross-border-sales-to-ukraine/
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Example 1982 branding[dead link]
  23. ↑ 23.0 23.1 Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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