Fashion Retail: Next plc

Fashion Retail

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction to the company...................................................................................................3
Key relevant changes in macro environment within the Next plc..........................................4
Relevant changes within the micro environment...................................................................5
Strategies and tactics that could be used by the company......................................................6
Recommendations..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Appendices.....................................................................................................................................11

INTRODUCTION
Retail can be defined as the sale of finished goods as well as services straight from the
business to the consumer as per the demand and the use. A retailer is an individual or a business
that the outer world purchase the products from (Arunraj and Ahrens, 2016). It has been seen that
the retailer do not manufacture the goods rather they acquire the products from the manufacturer.
Retailing, on the other hand, is the retailer process of dispensing the goods and then selling to the
customer for their further requirement and use.
The retail transaction deals with less quantity of products but wholesale handles with
buying services on the large scale. The fashion retailing enterprise focus on manufacturing and
creating designer cloths and other associated fashion accessories in order to produce profit and
increase the productivity of the organisation as well. This report will discuss the fashion retail of
Next plc including the PESTLE analysis of the business, micro environmental changes ,
strategies and future recommendations for enhancing the efficiency and smooth functioning of
enterprise.
MAIN BODY
Introduction to the company
Next Private Limited Company is a multinational British company of fashion dealing in
fashion clothings manufacturing, which has a headquarter in Enderby, Leicestershire. The
company has around 700 stores, out of which approximately 500 in United Kingdom and others
in Europe, Middle East and Asia. Such organisation was originally founded by Joseph Hepworth
in 1864 with partnership of James Rhodes, which later got dissolved. This has been considered
one of the largest retailer in clothing as per sales in UK, and it also got listed in London Stock
Exchange. The portfolio of such company has a long list covering goods and products like home
décor system, footwear, beauty products, lingerie, sports accessories, clothes of men, women and
children.
Mission – The mission of Next plc is to meet the demands as well as expectations of the
customers by rendering them attractively designed and exciting clothing with the assurance of
best quality of accessories, footwear, clothes and home ware (Choi and Shen, 2017). They focus
in building such environment that has a capacity to attract and retain the people to each and
every level.

Vision – The future vision of the company is to deliver supreme quality of all products
and services. It wants to be a natural choice retailer at the market of UK especially for those
people who are aware of recent trends and expect different styles in clothing from time to time.
Key relevant changes in macro environment within the Next plc
It has been observed that there are many variables and factors that affect the operations
and decision making strategies of any enterprise. The fashion retailer companies also face
changes in macro environment, so it is essential in identifying and monitoring the key issues and
the external factors affecting the mission and the objective of the business (Crewe, 2016). So as
to conduct such evaluation, PESTLE analysis is being conducted which covers political,
economical, social, technological, environmental and legal variables. Such analysis have been
discussed below.
Political factors – Major political factors that has an impact on the future of the company
are the rules and set of regulations which are designed by government. The rate of tax imposed
on the Next plc by the government is another political factor that affects the stability of the
corporation and has a imbalance in spending ability of customer in next brand. Another factor
has been considered as interest rates which have positive impact on the company because of low
rate in UK, thus allowing such enterprise to acquire large amount of money so as to capitalise the
business at much lower interest rate.
Economical factors – This factor deals with the economy of the United Kingdom, which
indirectly influences the economic status of the provided company. Such factors has major
consequences on the financial status either locally or globally. The factors like recession, taxers,
amount of supply over demand, rate of interest and exchange rates (Vecchi, 2016). These
variables have immense amount of influence over the profitability and productivity of Next plc.
By maintaining the economic factors, the fashion industry can attract large number of customer
which eventually enhance the revenue of the business.
Social factor – The social factor has direct outcome on the society at which the given
company have been operating. Factors consisting beliefs, values, social classes, attitude towards
saving and funding, population growth, age, lifestyle, thoughts on imported services are some of
the factors that affects the macro environment of Next plc as well as set the preference and
decides the way customer problems are dealt with. These factors assist in prioritising the