What effects will the strategy changes undertaken by next Plc have on themselves and their competition in the UK Clothing Retail Market?

Next is at the forefront of retail progression, from its 1988 Next Directory launch, online presence in 1999, next-day delivery in 2000 and mobile and tablet innovations today. Despite this, Next can no longer rely on this to maintain a competitive advantage. Digital is the primary growth driver, forcing retailers to invest heavily, whereby reducing differentiation. Expansion compresses margins including traditional channels, digital channels, product pricing, product quality and product offerings. Product differentiation and cost minimization throughout the entire supply chain became key success elements. Brexit uncertainty impacted the UK in areas including low interest rates, immigration, consumer sentiment and exchange rates, leading to potentially higher prices. Consumer shopping habits forced by the 2008 economic downturn reduced spending on many non-essential items. Despite the economy improving, discounting and quality, for a lowprice have remained, forcing retailers to react. The three traditional retail segments of value, mass market, and luxury are analyzed showing the technological impact on each sector and the latest category addition, the Internet-only component.

Next's business model is well-suited to take advantage of economic uncertainty that created consumer caution resulting in the elimination of nonessential purchases or switching to cheaper products. Next consistently finds ways to remain profitable even during recessions. The core to this success is their digital business, which still attracts new customers who refrain from shopping at traditional stores.

Next has remained at the forefront of evolving retailing trends and despite increased pressure, this will continue. Continued investments in digital delivery, marketing, consumer credit, international expansion, LABEL, Lipsey, and supply chain evolution have Next's competitors constantly having to play catch-up. When combined with inexpensive but stylish clothing, Next has always managed to be the one to beat and this will remain going forwards.