Next PLC shows how to profit from both bricks and clicks

Next PLC have demonstrated how to run an online retail business alongside their chain of retail outlets.   Their results for the year ending January 2014 can be found here.   Both segments of the business are still growing, albeit ‘clicks’ are growing at a faster rate than ‘bricks’.   This is important, as online sales can sometime lead to a decline in shop sales, making the physical outlets increasingly uneconomic.  However, Next have found that the profit margin on an online sale is greater than a traditional retail sale, which also enables them to keep their high street/shopping mall presence.

This entry was posted in Chap 14 Operations strategy, Sector: Retail and tagged . Bookmark the permalink.

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