NEXT PLC

Case study of NEXT RETAIL GROUP



Case study of NEXT RETAIL GROUP

Introduction

Next Plc (Next or "the company") is a retailer that offers clothing, footwear, accessories and home products. The company primarily operates in the UK. It is headquartered in Leicester, UK and employed 58,706 people as of January 29, 2011, of whom 37,220 were employed full-time. Next is the UK-based retailer of clothing, footwear, accessories and home products. Next distributes its products through three main channels: Next retail, a chain of around 500 stores in the UK; Next Directory, a home shopping catalogue and website; and Next International, with around 180 stores and website capability outside the UK. The company primarily operates in the UK, where it is headquartered in Leicester and employs around 58,706 people. The company recorded revenues of £3,454 million (approximately $5,329.8 million) in the fiscal year ended January 2011. Its net profit was £401 million (approximately $618.8 million) in fiscal 2011 (www.next.co.uk).

SWOT Analysis

Strengths

The NEXT brand is targeted at the top end of the mass market. Its well-established strengths are individual style, good quality and value for money (NEXT Annual Report, 2000). The key for this success is that NEXT designs its own products and sells them under its own label. As one of the largest retailers, they use their extensive market overview to recognize changes in customer wishes and behaviors. Creating products under its own label Allows NEXT to adapt quickly to changing market conditions. This procures NEXT PLC to invaluable advantage - saving time. The fashion industry is one of the fastest-moving markets. Adaptability, and time-saving Therefore, is essential in a market where time decides between success and defeat (Baker, 2000, pp. 10).

Weaknesses

Unfortunately, regular customers are sometimes obliged to buy in the stores of NEXT PLC's competitors. The root of this weak point can be found in the incomplete product range. For example, NEXT PLC does not realize the danger of not selling sportswear. In fact, if regular customers of NEXT PLC are interested in sportswear, they have to go to the competitors. This gives the competition a chance to convince NEXT customers of their advantages. Secondly, customer footfall is a good way to increase sales because browsers looking for a specific article will often buy more than just that item. For example, a man who is only interested in sports wear may buy a gift as well. On the other hand, if the man does not carry knows NEXT sportswear, he will automatically take his business elsewhere. This is why it is Necessary to get him in the store.

Opportunities

Times of social rethinking should be observed with attentiveness by NEXT PLC in order to make a profit. Nowadays, more and more people are becoming conscious about the significance of nature (Key Note, 2000). Manufacturing with natural fibers and environmentally friendly raw materials is a good opportunity to promote the reputation of socially conscious NEXT Thereby increasing long-term success. Individuality is a key word for profit. Latest studies show that the average body has ...