“Next stands out as a clear winner and its 5.9% rise in total group sales for the year ended January 2024 shows the extent to which it is outperforming the wider fashion retail sector, which is facing a slowdown. Next’s better than forecast 5% rise in group profit before tax, while largely a result of better than expected clearance rates of sale stock in January, is also testament to the retailer’s tight grip on cost and operational efficiencies. Next’s focus on improving quality, newness and choice within its own brand, alongside expanding its third party offering, have helped it to weather the storm. It responded to a growing consumer focus on value and more considered purchasing by extending its price architecture and adding higher-priced investment pieces and creating a new premium womenswear brand called Florere. As part of an ongoing quiet luxury trend, Mintel’s research for the Holidaywear – UK, 2023 report found that 66% of women chose to invest in more versatile styles over the last 12 months that can be worn in multiple ways and to different occasions.

As part of the strategy to diversify the Next business, the retailer has been acquiring new third-party brands, with the most recent additions including Cath Kidston and Made, as well as buying majority stakes in Reiss and FatFace. Next continues to see opportunities in developing wholly-owned brands, acquiring more third-party brands and through licence agreements and these will remain an area of focus over the next year.”