Following today’s release of Next’s figures for the nine weeks ending 28th December 2024; Emily Salter, lead retail analyst at GlobalData, a leading data and analytics company, offers her view: “Next has had a great FY2024/25, and its performance during the all-important golden quarter was no exception. Indeed, its total full price sales in the nine weeks to 28 December slightly outperformed its YTD performance, with growths of 6.0% and 5.6% respectively. This was aided by a 13% rise in the retailer’s sale stock as consumers were keen to snap up a bargain. Next’s strong performance has once again led Next to increase its profit before tax guidance by £5m for the year.
“In the UK, the retailer’s online growth was propelled by its LABEL branded proposition, which rose by 9.2%, while its own-brand sales grew by 3.8%. In Next’s Q3 the performance of these two divisions was very similar, pointing to a greater willingness among consumers to trade up to more premium brands for festive purchases, for both gifting and partywear. Meanwhile the retailer’s store sales fell by 2.1%, underperforming its YTD sales (-1.1%). This was perhaps impacted by the stormy weather in December, but it will also be as a result of the outperformance of the retailer’s branded proposition, which is only available online. Investments in its store estate, such as its relocation to a much larger site in Bluewater shopping centre, should help create a more desirable instore shopping experience and protect Next’s store sales in the future.
“Not one to rest on its laurels, Next has given its forecast for its FY2025/26, predicting full-price sales growth of 3.5%. This will be driven by its overseas performance, with UK and overseas sales set to rise by 1.4% and 14.0%, respectively. Next has greater scope to grow internationally, and the retailer expects the impacts of employer tax rises to dent consumer spending in the UK in the coming year. However, Next has proven itself to be adept at adapting to changes in consumer demand over the past few years, so if this is the case, the investments it has made into its online and branded propositions in particular will continue to pay off.”
