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| Next full-year profits fall in 'challenging' year | Next full-year profits fall in 'challenging' year |
| (35 minutes later) | |
| Annual profits at Next fell by 8.1% in what the High Street retail chain described as a "challenging" year. | Annual profits at Next fell by 8.1% in what the High Street retail chain described as a "challenging" year. |
| The company said pre-tax profits dropped to £726.1m in the 12 months to January, marking the third year in a row that income has declined. | The company said pre-tax profits dropped to £726.1m in the 12 months to January, marking the third year in a row that income has declined. |
| Next said that sales of full-priced products at its stores tumbled in contrast to online demand. | Next said that sales of full-priced products at its stores tumbled in contrast to online demand. |
| It blamed "a weak clothing market" as well as "self-inflicted product ranging errors and omissions". | It blamed "a weak clothing market" as well as "self-inflicted product ranging errors and omissions". |
| Full priced sales at its shops fell by 7% but rose by 11.2% online. | |
| Total revenue for the year fell by 0.5% to £4.1bn. | |
| Next's chief executive Lord Wolfson said that "in many ways 2017 was the most challenging year we have faced for 25 years". | |
| He said that while it had been uncomfortable, "it has also prompted us to take a fresh look at almost everything we do" including the structure of its shop portfolio and the "in-store experience". | |
| 'Quite lazy' | |
| Experts on the retail sector say mid-priced retailers like Next are in a tough spot. | |
| "The middle market is suffering and there isn't a way back home," according to Kate Hardcastle from consultancy Insight with Passion. | |
| "I think retail generally in this market place has been quite lazy. As soon as consumers had an alternative option that are perhaps are a better price, better product or faster moving product I think they've taken it," she said. | |
| "So you've seen the rise of Primark on the discount side, Asos and Zara on the more fashion orientated side and a consumer very much influenced by Instagram and social media. | |
| "It's just too much of a turnaround, too much of a challenge for these quite heavyweight retailers who have expected to trade they always have.," Ms Hardcastle said. |