Simon Wolfson, chief executive officer of Next Plc, on Thursday announced pretax profit of £1 billion ($1.3 billion) for the first time in the retailer’s history. It’s a level of earnings few British store chains reach. For some that have, it has been the prelude to a period of disappointment. But Next can escape the curse of the £1 billion profit retailer.
Next
Next’s biggest rival Marks & Spencer Group Plc is perhaps best known for suffering from this affliction. The high street stalwart hit the magic number in 1997 and 1998, when it was enjoying a surge in fashion sales, which then accounted for the bulk of its revenue and was very profitable. But to reach that target, M&S invested more in its bodysuits and blazers than in equally stylish stores. Customers eventually noticed. By 1999, after a damaging succession battle, profit had halved.
M&S topped £1 billion of pretax profit again in 2008, after coming close in 2007, when then CEO Stuart Rose once more revived its fashion, with eye-catching advertising led by 1960s fashion icon Twiggy. By then, food had become a much bigger part of the business, accounting for about 50% of sales. Brits were snapping up its indulgent treats, thanks in part to its “This is not just food….” campaign. But the milestone coincided with the global financial crisis, and profit went backwards once more.
It’s hard to see Next suffering from similar self-inflicted wounds. Wolfson is unlikely to sacrifice future investment in order to maintain the £1 billion level or become more profligate in his spending.
“If a business carries on growing its profits, it’s going to have to pass that threshold at some point,” he told me. “Nobody’s pension is paid by companies achieving an absolute level of profit.” What mattered to investors instead, he added, was the annual expansion in earnings per share, which had increased to 636 pence from 22 pence over the last 30 years.
The Next CEO also warned against thinking that a business of its size could shoulder excessive regulation and taxation. Although it upgraded its forecast for profit in the year to January 2026 by £20 million to £1.07 billion, sending the shares up as much as 11%, Wolfson said that tax increases next month could hurt employment and consumer confidence.
Next can’t escape the broader consumer backdrop. But it does have some levers to pull.
A key part of the company’s resilience has come from building its historic postal catalogue into a muscular online business, which accounts for over 50% of UK sales. Wolfson is now looking to replicate this success internationally. Expanding overseas has been distracting for some British retailers — including M&S — but Next will avoid opening its own stores outside of the UK. Instead it’s selling online in markets close to home either through its own website or other platforms, such as Zalando SE, with which it will work more closely. Further afield, it will sell Next products through retailers such as US department store chain Nordstrom Inc.
Then there are opportunities with brands outside of core Next, such as Label, which sells third-party names. This includes Seasons, which offers fashion from designers such as Joseph, Ganni and Rixo, to meet a desire among customers to buy fewer, better-quality items.
Online luxury has been decimated by the collapse of Matches Fashion and the struggles of Farfetch Ltd. over the past 18 months. That creates opportunities for players like Next that have the warehouse and logistical capabilities to serve more premium customers. Another way to enhance returns is to offer these services to the third-party brands it sells.
“We have lots and lots of acorns,” Wolfson noted. “We don’t tend to talk about them until they are at least saplings.”
Perhaps the biggest risk for Next is not reaching £1 billion of profit, but the day Wolfson decides to hang up his shopkeeper’s apron.
Under his tenure, which began in 2001, shares have generated a total return, including reinvested dividends, of 2,900%, about 13 times that of the FTSE 100 Index. The company is highly cash generative, having a surplus of £669 million last year, enabling it to invest and return money to shareholders, including through £360 million of share buy-backs.
“I’m 57 years old, relatively young as a CEO. My plans are completely unchanged by the fact we have now reached this slightly arbitrary [number]” he said.
Given his diligent management of the business, he’s likely to have built a strong team behind him, even if he remains so closely associated with the company. But CEO succession is an issue that investors will eventually have to contend with.
Next can be the exception to the rule that £1 billion of profit is a harbinger of doom for Britain Plc. It must now take steps to ensure that when the time comes, it departs from another uncomfortable chapter in the retail history books: When a long-serving and successful leader bows out, a period in the wilderness follows.
From Warsaw, with love. That could have been the footnotes for the Polish brand Magda Butrym and Swedish behemoth H&M‘s celebration of their collaboration, which is set to debut on April 24.
Magda Butrym and VIP guests at H&M’s rose-themed celebration in Brooklyn. – Photo credit: Lucas Possiede / H&M
The celebration took place in an architecturally stunning former bank reminiscent of European spaces and was attended by a mainly female crowd with VIP guests such as Chloë Sevigny, Iris Law, Irina Shayk, and German influencer and model Nara Smith. It featured performances by Charlotte Lawrence and Kelela.
FashionNetwork.com caught up with the designer and H&M’s creative advisor, Ann-Sofie Johansson, to discuss this latest pair-up.
Ann-Sofie Johansson and Magda Butrym at H&M’s collaboration event in Brooklyn. – Photo credit: BFA / H&M
“She’s brilliant and the first Polish designer we’ve collaborated with. It’s great to find talent all over the world, outside of the four fashion cities, and show their creativity,” Johansson said in between photos of VIP guests. “It’s also nice to pick someone that might not be known outside of the fashion industry, and she is also a woman owning and operating an independent brand. Her designs are beautiful and feminine, and our customers will love them,” she added.
Despite collaborating with designer brands for over 20 years, the Swedish retailer still finds each unique. “With Magda, it was quite intimate because she has a small team of designers and pattern makers. Our first meeting was in Warsaw; our team had never been there. So, it was nice to see her within her city and vibe,” she added.
Seeing her in her element influenced the event, as did serendipitous logistics as Butrym headed to New York for her project. “It all came together here, and New York is New York. Everyone wants to come here to experience all the energy here, including all the people,” Johansson continued.
Despite being in New York City, the Swedes and Butrym gave the event a magical fantasy vibe. As guests entered the landmark 1929 Byzantine-Romanesque-style former Williamsburgh Savings Bank located in Fort Greene, Brooklyn—with its cavernous 60-foot vaulted ceilings, arched windows, mosaic floors, tinted glass windows, and a 17-year-old Polish opera prodigy from Chicago singing from the balcony—it was easy to mistake the space for a church. The room was bathed in pink lights and adorned with fresh rose sculptures, and the furniture was draped with white fabrics. As a centerpiece and nod to Butrym’s signature rose was a massive pink fabric sculpture resembling a rose that hung from the ceiling.
Ann-Sofie Johansson, H&M’s creative advisor, at the rose-filled venue in Brooklyn. – Photo credit: BFA / H&M
“Each event has to reflect the designer,” Johansson said of the ambiance. “We want to enter the designer’s universe, their world. The rose, for example, is one of Magda’s signatures. So, what she wants that can ‘rhyme’ with H&M is what we stand for. In her case, it’s about beauty, and we need some beauty right now,” she added.
For Butrym, the past week spent in New York—with husband and child in tow—has been a bit surreal and busy, as she just opened a Magda Butrym pop-up store in SoHo, marking her second retail venture, as she opened a flagship store in Warsaw last year.
“When we drove over the Brooklyn Bridge to get here tonight, it hit me, and I still don’t believe it even now that I’m saying it. It’s overwhelming,” Butrym said, describing her awe of being in the Big Apple for such important brand moments. “The pop-up is so adorable; it’s all done in crochet and really romantic,” she added.
According to the designer, the Swedish team at H&M made things seamless. “They sent us a document of their thoughts about the brand and what they love. Since I am making a new collection every three months, it was really helpful because I didn’t have time to go back to the archives,” Butrym said as her guests posed for photos in front of the giant rose and sipped pink cocktails and champagne.
“It was a great exercise for me and my team because when you do the main collection, you are constantly pushing the thing. It was revisiting these styles and imagining them differently. So, let’s show the flower in a different way or a different style in a new shape. This was adapting it to something else, thinking, what would people love to have? The clients see my designs on celebrities; now they will have this part of my world. This project was a pleasure for me,” she added.
The collection includes a sexy, clingy red dress with rosettes on the bust worn by Law and another rouge style worn by Smith, recalling a bouquet of roses. Shayk wore sharp black tailoring, while Gray wore a black jersey top with a sculptural flower detail at the neck and a matching long-line skirt. Valentina Sampaio wore the collection’s striking burgundy leather trench, and Sevigny wore a stretch mini dress with the collection’s iconic rose print.
Butrym was also thrilled about bringing the opera singer to share some Polish culture. “She was singing in Polish, so it’s very important to me. You hear Polish songs. It’s amazing that this little country has a moment here in Brooklyn,” she reflected.
With the return of Stockholm Fashion Week, it would seem fitting that the designer shows there, but Johansson doesn’t imagine that happening. “She’s on the official Paris schedule and has shown there for the first time. That is a big thing, so I am sure Magda will continue with that,” Johansson said. In any case, while it sounds like she will stick with her European allies for her new collection debuts, thanks to Sweden, the rest of the world will have a chance to discover Butrym’s oeuvre.
Bigger and better continues to be the theme among major retailers and Primark’s expanded new space at the White Rose Shopping Centre in Leeds is being billed as “significant” by landlord Landsec.
Photo, Sandra Halliday
Expected to be complete in 2027, the doubling of Primark’s Rose White footprint (from 26,200 sq ft to 55,700 sq ft) “comes as many brands continue to prioritise better and bigger stores at the best-located and highest-footfall destinations across the UK”, noted Landsec.
And it’s the latest of a series of flagship brand investments at White Rose, with Primark’s expansion following JD Sports tripling its space last year with a new 15,537 sq ft store.
“This expansion and growing breadth of new retail, food, beverage and leisure experiences has contributed to Landsec reporting record-breaking footfall for the second consecutive year at White Rose Shopping Centre”, the operator said, noting that over 12 million people visited the destination in the last year, a year-on-year increase of 4.3%.
Landsec also said its retail portfolio “continues to demonstrate strong performance with occupancy now exceeding pre-pandemic levels at 96% and regularly outperforming industry footfall benchmarks”.
Primark has also begun expanding the ‘lifestyle’ aspect of its retail offer, announcing the opening of its first-ever standalone ‘Primark Home’ store in Northern Ireland in March. Spanning around 8,700 sq ft. Primark calls it an “exciting new venture marking a significant milestone”.
JD Williams and Gok Wan have launched an ‘Empowering SS25 Collection’ accompanied by a strong campaign targeting women in midlife.
That campaign, ‘We See You’, launches after a survey revealed 60% of women “feel invisible in midlife… especially while shopping for clothes or in social situations with younger generations”.
And the retailer and stylist add: “Midlife isn’t about slowing down or feeling apologetic for wanting to be seen – it’s about embracing a new chapter full of confidence, adventure, and self-assurance”.
Developed using insight “from hours of customer research, the campaign is a new, more confident expression of the brand’s midlife specialism”.
The campaign “aims to shatter outdated stereotypes” and “celebrates the rebellious spirit, energy, and effortless style of midlife women, empowered, stylish, and unapologetically themselves”.
“Redefining the midlife dress code”, the collection features “vibrant swimwear, effortlessly chic tailoring, and stylish yet comfortable dresses” with options for every occasion”
It will drop throughout April, May and June on jdwilliams.co.uk in sizes 8-32 and starting from £18 in price.
Esme Stone, head of Brand at JD Williams said: “For too long, midlife women have been overlooked by fashion brands and misrepresented by society. It’s time to flip the script.
“Midlife isn’t about slowing down or feeling apologetic for wanting to feel seen – it’s about embracing a new chapter full of confidence, adventure, and self-assurance. Our ‘We See You’ campaign is about celebrating and empowering women who are rewriting the rules and embracing this vibrant life stage with unapologetic style and strength.
Stone added: “Every piece has been curated to empower women to dress with confidence, embrace bold colours, and make a statement wherever they go.”