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UK : Next to renovate brands for compensating low sales
March 24, 2007 |  |
In order to make up for lower high-street sales, UK retailer Next will renovate its brands by launching fresh product ranges and through store refits.
Next plans to spend £97 million on revamping outlets to regain its consumers and £10 million on marketing against last year’s £1.5 million. Company is concentrating on rich products as competition has surged sharply in lower end of the market.
High street stores witnessed a decline of 7.5 percent in like-for-like sales during first seven weeks of 2007. This was a shock for Next according to Chief Executive Simon Wolfson, with customers spending lesser at the outlets.
But pre-tax profits upturned 6.5 percent to £478 million due to sales rise at Next’s Directory business, which was quite a relief considering poor high-street sales. Net revenue went up 5.7 percent to £3.3 billion.
For revitalizing brands, new ads were introduced at high street in past six months. The trend will be boosted now. | | |
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