CW1: Inquiry Project Report on NEXT Retail Business Analysis

This report presents an inquiry project analyzing the NEXT retail business. It begins with an introduction and literature review, exploring current trends in the retail sector. The methodology outlines the data collection methods, including primary and secondary sources. The results and discussion section provides a detailed analysis of NEXT, including a SWOT analysis based on primary and secondary data. The report then discusses NEXT's performance against industry trends. The report concludes with recommendations for NEXT to maintain success, such as expanding online presence within physical spaces, responding to changes, and enhancing the use of chatbots. Overall, the report offers a comprehensive overview of NEXT's business, providing valuable insights and actionable recommendations for future growth and success in the competitive retail industry.

CW1:Inquiry project

Table of Contents
INTRODUCTION...........................................................................................................................1
LITERATURE REVIEW................................................................................................................1
Trends in retail.............................................................................................................................1
METHODOLOGY..........................................................................................................................2
RESULTS OR DISCUSSION.........................................................................................................3
Analysis of company....................................................................................................................3
RECOMMENDATIONS.................................................................................................................5
CONCLUSIONS..............................................................................................................................6
REFERENCES................................................................................................................................7
APPENDICES.................................................................................................................................8

INTRODUCTION
Project could be delineated to a sequence of activities that are to be completed for the
purpose of accomplishing specific results. Similarly, inquiry project is a work that includes
group of learners that investigates a worthy problem, idea or issue (Hirst, 2019). It is an authentic
work which comprises serious engagement together with investigation. For present inquiry
project report, considered organisation is NEXT which is multinational footwear, home as well
as clothing products retailers having headquarters situated at Enderby, UK. The company have
approx 700 stores among which circa 200 across Middle East, Europe, Asia and circa 500 are
located in United Kingdom.
The report highlights trends pertaining within retail sector, organisational analysis as well
as recommendations to company for continuing operations in complex retail industry.
LITERATURE REVIEW
Trends in retail
In accordance to statement of Von Briel (2018) retail industry is defined to that sector
wherein ventures or enterprises sells any type of commodity to an individual consumer for own
usage. In this industry, product or service selling takes place through certain mechanisms such as
store at bricks together with mortar location, departmental shops, postal services and hence forth.
Retail industry have went through enormous structural changes in last couple of years with
digital technology addition to e-commerce at centre to transform retail landscape of UK.
Gibbons (2020) says that retail industry of UK is considered as £395 bn industry. Store
shut down in the month of March and April of 2020 has huge negative impact on retailers as it
have resulted in nearby 5 to 6% of overall annual decline in annual sales. In 2020, approx to
3096655 retail outlets exist within retail sector. It is also determined that around 324% of online
sales have increased in last couple of years. Top players or enterprises that operate effectively in
retail industry includes Aldi, IKEA, Marks & Spencer, Asda, John Lewis, Argos, Wilko, Card
Factory, Waterstones, NEXT and so on. Key trends associated by retail industry are as follows:
Digital by design: Year 2020 is proved to be one of transformation year for retail industry
through offering compelling cases about digital first approach. It is because retailers have to
close down their stores due to Covid-19 restrictions as well as consumers were informed for shop
from home. For the purpose of reaching to locked down consumers, retailers had to make
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decision for only channel available for scaling their online potentiality. It is expected that this
will lead to more and more number of retailers adopting digital first approach.
Health becomes new battleground: It is one of trend within retail sector that consumers
are changing their behaviours. They are working to emphasis more on healthy and wellness
which have wider chances of improving demand for wearables addition to data services so to
deliver personalised programmes (Peker, Kocyigit and Eren, 2017). More time as well as money
are dedicated by consumers for looking after themselves and it is devises greater opportunity for
retailers of UK.
Thoughtful experiential: Growth of online have put pressure on retailers for the purpose
of reassessing true value addition to role of stores. In last couple of years, experience related
retailers struggled with limited footfall together with opportunity for fostering consumer
engagement. Experts in the industry believes that experience remains important to future of
outlets which requires to be more thoughtful (Retail Trends 2021, 2021). Moreover, cost pressure
along with investment in experience requires to ensure that all these makes sense as per brand
perspective, deliver commercial return as well as adds consumer values.
Eco-friendly shopping as main consumer priority: With changes in ecological factors,
consumers are becoming more aware about ways to protect environment. For this, the are
demanding from retailers about implementing measures which will permit them for
environmentally conscious shopping with the help of participation in recycling schemes so to
develop sustainable goals (Moorhouse, tom Dieck and Jung, 2018). Top retailers of UK have
announced that in the year 2022 they will be launching a Deposit Return Scheme which will
permit consumers to make payment of 20p deposit on individual use drink containers so to get
refund on being returned to returns place.
METHODOLOGY
Data refers to collection of facts comprising measurements, numbers, description of
things and observations. Key steps that are undertaken for conducting the research of inquiry
project includes identifying general study area, selecting topic for research, devising plan along
with methodology, collection of data, analyse as well as interpreting data and presenting
findings. The investigation for the report is carried through through using two sources of data
collection. One is primary source and another is secondary source. Primary source is termed as
original data source wherein information is collected first hand for particular investigation
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purpose. For present report, information or data is gathered through questionnaire and
observation method. Questionnaire that is used by professionals of NEXT in order to collect
information from respondents are attached in Appendices. At same time, secondary source is
represented as data collection method in which information which is collected by other is used in
investigation (Oh, Yeatman and Trinitapoli, 2019). Key secondary sources that helped the
researcher in collection data for the report are journal articles, books, websites and many more.
RESULTS OR DISCUSSION
Analysis of company
NEXT is leading British retail organisation which was founded in the year 1864 at
Enderby, UK. It is largest clothing retail business by sales in United Kingdom. It was established
by Joseph Hepworth. It performs its operations in areas of Europe, Middle East, UK and Asia.
Presently, the organisation have existence in approximate 700 stores in which 500 are at UK and
rest 200 are located across Europe, Middle East along with Asia. The retailer performs
operations with the mission of becoming natural choice venture in UK for clothing aware female
and male that are expecting distinction, quality along with style from the entity. It designs,
manufactures along with distributes home furnishing, accessory products and clothing to approx
330 NEXT retail stores as well as organisational Directory mail order sales catalogue. It have
employed its own design manpower for keeping eye on seasonal trends, industrial trends and to
devise offerings accordingly. In the year 2020, Next have achieved revenue of £4,266.2 Million,
net income of £610.2 Million and operating income of £853.9 Million with employee size of
approx 44139 people.
SWOT Analysis of NEXT
On the basis of results that is obtained from primary data collected by using questionnaire
approach, it is founded that NEXT is one of popular retailer in the market for its high quality
offering at affordable prices. Products of such retailer are sold at flexible rates which attracts
wider customer base that is its on its key strength. At same time, customers of NEXT says that
employees at premise do not assist or provide guidance at the time they shop that dissatisfy them
the most. The retailer can meet increasing demand for offering through offering large discounts
on certain products that will help it to improvise its financial position in industry and generate
profits.
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As per secondary data that is collected through books, journals and other sources, results
of SWOT Analysis about NEXT is as presented:
Strengths:
 NEXT have strong distribution network
that helps in reaching majority of
potential locations.
 The retailer have strong free cash flow
which provide numerous resources at
organisational hands for the purpose of
further expansion of projects.
 The company have high skill workforce
that are trained through successful
learning programs.
Weaknesses:
 In provided scale of expansion along
with distinct geographical location,
NEXT lacks investment in new
technologies.
 Profitability ratios along with Net
Contributions of percentage of the
retailer are below industry average
(Sharma and Sehrawat, 2020).
 It lacks success in integrating
organisations with distinct work
culture.
Opportunities:
 Technological development is huge
opportunity for NEXT to expand in
wider geographical locations and meet
customer demand.
 Changes in policies and adoption of
new engagement policies can help the
retailer in integrating with companies
that have different culture of working
(Maguth and Wu, 2020).
Threats:
 New technologies developed by
competitors in industry is a serious
threat for NEXT to make future in long
term.
 Intense competition at domestic and
international level is another threat for
the retailer.
Organisational performance against trends pertaining in the industry
Performance of NEXT is improving year by year within global retail industry. It is
because it have experts and professionals who have implemented effective strategies for gaining
support along with trust of customers. Such retailer carry out its operations on the basis of
analysing pertaining trends so that necessary modifications in tactics and practices are carried out
in retail sector of UK and other countries. Core agenda of NEXT is sustainability with the help of
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which organisational performance is emphasised to reduce carbon footprints. With this, customer
expectations are met at centre and leading positions are accomplished. Trends in retail industry
have assisted the venture for expansion within emerging market addition to devise new channels
(Fernandes, Rodrigues and Ferreira, 2019). At certain times, managers of NEXT fails to execute
practices as per set criteria but by making improvisations in strategies, they are able to perform
smoothly within retail trends.
RECOMMENDATIONS
For the purpose of focusing towards continuing on success, there are certain tactics or
strategies which are important to be adopted by managers and administrators of NEXT. Some
recommendations to professionals of NEXT in order to continuing success are as mentioned:
Online outlets within offline spaces: It is recommended to managers of NEXT to launch
together with expand their physical existence so to continue their success in dynamic and
competitive industry. With this, the retailer will be able to open stores that sell apparel, home
related and other products, that makes sense, for personalisation by using digital mechanisms.
For instance, NEXT retail store could be a new store of the company designed from ground up
with the purpose of offering seamless shopping experience at the time when customers shop
either in store or online that will drive organisational success to huge level.
Responding to change: Business change are inevitable in nature and the ones who are
capable to respond are versatile. It is recommended to professionals and administrators of NEXT
to be prepared for accepting change together with adapting operations successfully. Managers
are suggested to realise from initial so that they do not leave behind. However, in context to lack
of adaptability, then it can lead to loss of profits, customer base and business failure. Changes
can begin at any time and when managers will respond on them promptly then it will help them
to continue business success so to win heart of global economy.
Enhance use of chatbots: Covid-19 have resulted on restricted in person experiences due
to which organisations have to severely reduce face to face interactions along with support with
customers. For the purpose of meeting needs of customers from the location they resides and
continue achieving success, it is recommended to managers to NEXT to embrace chatbots
addition to personal assistants. Prior to pandemic, the company was already using the technique,
however, the entity is suggested to make necessary developments in the technology so that it can
engage with customers on apps of messaging including KiK, Facebook Messenger and so on.
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Chatbots will offer the business along with users certain benefits such as 24*7 availability,
shorter wait times, etc. With this, it will become possible for administrators of NEXT to help
customers in completing their purchase in minimum durations so that huge revenues are
achieved to continue success.
CONCLUSIONS
From the report, it have been concluded that inquiry project is a working which
comprises investigation on worthy idea, problem and issue. Key trends concerned with retail
industry are Digital by design, health becomes new battleground, thoughtful experiential and
Eco-friendly shopping as main consumer priority. Primary data and secondary data are key
methods that researcher uses for the purpose of collecting information that are required in
investigation. Key recommendation that will aid organisational managers to continue their
success includes online outlets within offline spaces, responding to change and enhancing use of
chatbots.
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REFERENCES
Books and Journals:
Fernandes, G. W. R., Rodrigues, A. M. and Ferreira, C. A. R., 2019. Using ICT in Inquiry-Based
Science Education. Springer International Publishing.
Hirst, N., 2019. Education for sustainability within early childhood studies: Collaboration and
inquiry through projects with children. Education 3-13. 47(2). pp.233-246.
Maguth, B. M. and Wu, G. eds., 2020. Inquiry-Based Global Learning in the K–12 Social
Studies Classroom. Routledge.
Moorhouse, N., tom Dieck, M. C. and Jung, T., 2018. Technological innovations transforming
the consumer retail experience: A review of literature. Augmented reality and virtual
reality, pp.133-143.
Oh, J. H., Yeatman, S. and Trinitapoli, J., 2019. Data collection as disruption: Insights from a
longitudinal study of young adulthood. American sociological review. 84(4). pp.634-
663.
Peker, S., Kocyigit, A. and Eren, P. E., 2017. LRFMP model for customer segmentation in the
grocery retail industry: a case study. Marketing Intelligence & Planning.
Sharma, M. and Sehrawat, R., 2020. Quantifying SWOT analysis for cloud adoption using
FAHP-DEMATEL approach: evidence from the manufacturing sector. Journal of
Enterprise Information Management.
Von Briel, F., 2018. The future of omnichannel retail: A four-stage Delphi study. Technological
Forecasting and Social Change. 132. pp.217-229.
Online:
Gibbons. K., 2020. KPMG: UK retail sector trends 2020 & forecast 2021. [Online]. Available
through: <https://resignal.com/blog/kpmg-retail-sector-trends-2020-forecast-2021/>
Retail Trends 2021. 2021. [Online]. Available
through: ,https://www2.deloitte.com/uk/en/pages/consumer-business/articles/retail-
trends.html>
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APPENDICES
Questionnaire
Questions Frequency
Q1. What features of NEXT motivates you for shopping its offerings?
A. Quality 20
B. Service excellence 20
C. Low product prices 10
Q2. How often you buy fromNEXT?
A. Daily 10
B. Once in week 20
C. Once in month 12
D. Once in year 8
Q3. Does workforce of NEXT help or guide you when you are
shopping?
A. Yes 32
B. No 18
Q4. Do you also shop from other retail outlets except NEXT?
A. Yes 35
B. No 15
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