Analysis of Next UK Cloth - Math Problem Example

• 15 million shares purchased for cancellation during the year at a cost of £218m f course is to remove favoured trading status from monopolies or exclusive suppliers, thereby exposing them to the harsh reality of competition.

Analysis of NEXT and its environment

Good quality and price Relationship between Next and its environment

Shopping as an event

Introduction This report will give the reader an overview of the clothing retail market in general and an in-depth analysis of NEXT in detail. The main emphasis in this essay is the Retail and Directive division of NEXT because they are the cash generators. Further, it shows the current situation of NEXT, its environment and the recent development of the company. The report also provides a mission statement and strategies for how to be more successful in the near future.

Overview
The Market
The UK clothing market is a declining market. The clothing industry is weighed down by competition from companies, which have invested in hi-tech machinery leading to greater efficiency or have moved their production to factories in cheap labour cost countries to produce their products. However, most companies in this sector make only moderate profits. Expanding the market share in this arena is not easy, and therefore it needs a great deal of endeavour, knowledge, as well as energy and money.

Clothing retailing can be termed a highly diverse industry. The retail sector ranges from low-cost and discounts retailers to independents, sportswear, formal wear and highly exclusive designer boutiques. However, as in most consumer goods markets, it is at the middle level where the major players are to be found and money can be earned.

The Company NEXT is a trendy high street retailer, which sells moderately priced clothing for stylish women and men in the age range 20 to 40. The company also provides home shopping and financial services. NEXT operates through five divisions: NEXT Retail operates the high street shops through more than 330 stores covering the UK and Ireland; NEXT Directory is the mail order division which also contains the e-commerce platform; NEXT Overseas operates retail outlets in the United States, Asia, Continental Europe, and the Middle East through franchise agreements;

Ventura runs the financial services division. Other activities include telecommunications software services and property management. NEXT Retail accounted for 69% of the fiscal revenue for the year 2000; NEXT Directory, 19%; Ventura, 9%; NEXT Overseas, 1% and other activities, 2%. More than 96% of sales were achieved in the UK market.

Taking an up-to-date snapshot of the current situation of the Company, it is quite a success story. NEXT nearly tripled its sales during 1994-2000 and almost 59% increase in turnover between 2002-06. The earnings of shares were enhanced from 58.1 to 127.4 pence and an increase in dividend was from 27.5 to 44 pence per share. It denotes healthy growth.