Next looks to grow portfolio
Published: 24 March, 2011
After a strong set of results, Next is on the lookout for more new stores
Next saw group revenues increase 1 per cent to £3,454m in the year to January 2011. And group profit before tax was up 9 per cent to £551m. The company continued to grow its online business through the Next Directory, which now accounts for 27 per cent of group sales and 40 per cent of profits.
But chief executive Lord Wolfson said the company remained committed to its physical store portfolio: “Our programme of extensions and new store openings continued to provide additional sales and profits for the group,” he said. “We increased total trading space by 310,000 sq ft, an increase of 5.4 per cent during the year, increasing our portfolio by 8 stores to 525. We opened a further 11 standalone Home stores, taking our total Home stores to 29.
“In the year ahead we have the opportunity to accelerate our space expansion programme, driven by further Home stand alone stores. We expect to open at least 440,000 sq ft in the year ahead, included in this number is 240,000 sq ft in 15 new Home stand alone stores.
“In addition, we anticipate that we will spend circa £18m on cosmetic refits in order to keep our existing store portfolio up to date. Despite like for like sales declines we have actively managed our store portfolio to keep it highly profitable; we closed 11 stores during the year.”
