Question

In: Finance

How has NEXT PLC performed over the last three years? This should be a broad overview...

How has NEXT PLC performed over the last three years?

This should be a broad overview of the performance and the threats and opportunities that the company has faced and any opportunities that have the management have been able to identify and what strategies they have developed for the future.

Solutions

Expert Solution

NEXT PLC
Strategies developed for future
Develop the NEXT Brand Continue to develop its buying and designing capabilities, delivering better design, improve quality and quicker response to new trends
Upgrade Directory Continue to build on improvements to the directory.
Development to be focused on website functionality, website look and feel, personalisation, online marketing capabilities and delivery services
Invest in online growth businesses Continue to develop NEXT overseas through investment in website and roll out mobile site. Continue to develop LABEL through the addition on new key brands.
Control Costs Control costs through constantly innovating and developing more efficient ways of operating. This must be done without detracting from the quality of products and services.

Pointers on Performance, threats and opportunities:

1. As a result of active management of the retail store portfolio, vast majority of stores made a healthy profit with 97% of the total space delivered net branch proft.

2. NEXT retail operating margin dropped from 16.9% to 14.7% whereas Directory operating margin improved from 24.4% to 25.7% (comparing 2016 and 2017).

3. Opportunities:

  • Optimize store space
  • Consolidate internal marketing and buying
  • Expansion into new market

4. Threats:

  • Marks and spencers, Arcadia Group and Debenhams PLC. are their biggest competition
  • Target market is reduced.

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