Next says no-deal Brexit tariffs could save £15M to benefit shoppers
Category: #headlines  By Nikita Chaurasia  Date: 2019-03-23
  • share
  • Twitter
  • Facebook
  • LinkedIn

Next says no-deal Brexit tariffs could save £15M to benefit shoppers

The latest move comes in the wake of the company’s increasing focus on web sales, as it is expected to close around 507 stores over the next 15 years

Next, the fashion retail giant, has announced that after a no-deal Brexit it could save up to £15M with benefits from lower trade tariffs, that could be passed on to the consumers.

Next’s Chief Executive, Lord Simon Wolfson mentioned that consumers are not aware of the daily swings in the political debate and their purpose is to provide them improvements in the cost price, in the form of best pricing.

Citing reliable sources, in February the retail sales showed an increment of 0.4% despite surveys suggesting there is a downfall in consumer confidence. Next had reported a 0.4% fall in pre-tax profits to £722.9m for the 12 months to the end of January. In high street sales, a 7.9% plunge was countered by a 14.7% increment in online revenues.

According to Lord Wolfson, there is no proof regarding the uncertainty that Brexit is affecting consumer behaviour in this sector or not. He claimed Brexit was showing very slight negative impact on the business.

Lord Wolfson said that despite the uncertainty, the economic fundamentals that are affecting consumer behaviour have refined so far, by improved job rates and low inflation.

The latest move comes in the wake of the company’s increasing focus on web sales, as it is expected to close around 507 stores over the next 15 years.

As per Next’s prospective the business’s future is focused on advancing in online sales but around half of the online orders are carried out through a click-and-collect service, with over 80% of returns being completed in store.

The main reason behind this is that every £1 business that is migrated to online costs an additional 6p to Next, which is resulting in undermined profits. Still, advancements in online sales are exponentially well while restructuring costs are set to stay for a while, but Next’s track record suggests that it can bring up the profits by the end of the phase.  

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia    

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More

More News By Nikita Chaurasia

GSK, Zymeworks expand partnership for bispecific antibody development
GSK, Zymeworks expand partnership for bispecific antibody development
By Nikita Chaurasia

GSK anticipates using Zymeworks’ Azymetric technology for developing bispecifics drugs that treat communicable diseases Zymeworks Inc, a clinical-stage biopharmaceutical company, has recently announced that GSK has extended its 2016 licensing ...

Vertex, Kymera join forces for developing protein degradation drugs
Vertex, Kymera join forces for developing protein degradation drugs
By Nikita Chaurasia

Vertex would be paying $70 million in advance to work with Kymera including an equity investment in the company Kymera Therapeutics and Vertex Pharmaceuticals Incorporated (VRTX) have reportedly announced that they are entering into a four-year rese...

Amazon plans job cuts as it deploys machines to pack orders
Amazon plans job cuts as it deploys machines to pack orders
By Nikita Chaurasia

Amazon is well known for its drive to automate as many segments of its business as possible. The American multinational technology company Amazon Inc. is reportedly planning to deploy machines to automate boxing up customer orders. The company has i...