Disastrous season for Next as shoppers stay away

 

Last updated at 11:09am on 4th January 2007

Next claims it was hit by competition from discount retailers

 

 

 

Britain's second-biggest clothing chain today reported a disastrous Christmas.

Next revealed that shoppers stayed away from its stores in the six-week run up to the festive period.

The firm is the first big name to reveal how the high street has fared in the Christmas shopping season.

Results released today showed Next’s like-for-like sales figures were down by nearly seven per cent for the second part of 2006.

Bosses said the chain had been hit by competition from discount retailers such as Peacocks as well as big supermarkets such as Tesco selling clothes as low prices.

Despite admitting it had been a “challenging year”, managers said Next had not cut its prices and that would ultimately benefit profits. It also said it had gone into the new year with less stock than last year and cleared it more quickly.

But it was good news for the company’s internet sales growth with sales of the Next Directory, the online and telephone sales arm which represents about a quarter of the business, up by more than nine per cent. Combined sales for the group were up by 2.8 per cent.

The company said group profits for the year would be about £10million above expectation. Next has opened dozens of new stores in a bid to overcome increased competition, also coming from Marks & Spencer.

The revival of M&S has led to some worries that the company might be in danger of undermining its own profits if a new store opens too near an existing outlet. Next shares were indicated lower this morning.

Oxford Street bargain hunters were less than enthusiastic about what Next had to offer compared with some of its more edgy rivals.

I'm not surprised. everyone knows about the Next sale, that's why so many mental people queue from 1am for the doors to open!! why buy something on the 24th Dec, when you can get it so much cheaper a few days later.

 

although having said that, I didn't buy anything from the branch in Manchester because there was so much stuff it was near impossible to browse

^I can't stand shops which have no space.........................

I bought a couple of pairs of trousers from Next a week after Xmas. Nearly 70% off.

I bought a couple of pairs of trousers from Next a week after Xmas. Nearly 70% off.

 

The cost, or the trousers??:rolleyes:

^I can't stand shops which have no space.........................

 

 

there was loads of space, coz its the hugest store ever, but there was just rack after rack after rack which was extremely daunting.

there was loads of space' date=' coz its the hugest store ever, but there was just rack after rack after rack which was extremely daunting.[/quote']

 

So the space has been poorly utilised! Just as bad!!:angry:

10-1 on Next being the next shop to go bust.

10-1 on Next being the next shop to go bust.

 

You mean Next will be next???:rolleyes:

Maybe, who knows what will be next to call it a day?

Maybe' date=' who knows what will be next to call it a day?[/quote']

 

The Labour government??:rolleyes:

Nope, shops going bust isn't a direct action of Tony's actions. You could argue that the raising taxes could have an indirect effect.

Nope' date=' shops going bust isn't a direct action of Tony's actions. You could argue that the raising taxes could have an indirect effect.[/quote']

 

I was only talking about "bowing out"!!:dozey: