REG - Next PLC - NEXT Total Platform Accelerates Joules Transition

NextAnnouncement

25/04/2023 13:30

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RNS Number : 4146X  Next PLC  25 April 2023

NEXT plc

25 April 2023

 

NEXT TOTAL PLATFORM ACCELERATES JOULES TRANSITION AND INCREASES SCOPE OF
SERVICES

Joules Total Platform to be Delivered Early

Over the last year NEXT Technology teams have made significant progress in
reducing the lead times for the delivery of TOTAL PLATFORM (TP).  As a result
we now believe Joules can launch its TP site much earlier than expected.  The
launch date, which was proposed for March 2024, is now planned for October
2023.

Increased Breadth of Services to be Provided

To date, TOTAL PLATFORM has focussed on providing website, warehousing,
distribution, contact centre, online advertising and retail services.  The
scope of the planned services for Joules will be significantly wider.  In
addition to existing TP services, Joules will use the following NEXT systems:

●   Product systems, encompassing stock planning, budgeting, contract
management, progressing, imports and inbound administration.  This will
enable them to take advantage of the Group's inbound freight and duty
arrangements.

●     Finance, Payments and Accounting systems including accounts
payable services, management information, profitability analysis and more.

●     HR systems which will, in time, include store man-hour rota and
planning systems and payroll.

At this stage, NEXT plans to provide all these services to Joules on a
cost-plus basis.

A Highly Focussed Business

Joules will remain an independent company (74% owned by NEXT) with its own
Board and management team.  However the team, led by founder Tom Joule, will
be entirely focused on product, marketing and brand development.  The
functions that will continue to be wholly managed by the Joules teams are as
follows:

●     Design, buying, garment-technology and merchandising

●     Brand marketing, styling of photography, branding, social media
and PR, shows and events

●     Website content and look-and-feel

●     Wholesale and sales through third parties

Cost Savings and Restructuring

We had always intended that TOTAL PLATFORM would deliver material cost savings
to Joules.  Following the decision to deliver much broader services to
Joules, we are now planning for those savings to be significantly greater than
originally anticipated.  The full benefit of these savings will not be felt
until the beginning of 2024 so are unlikely to materially affect the current
year's profit of the NEXT Group.

Impact on Personnel

As a result of these changes, a number of tasks performed by Joules personnel
will be absorbed into NEXT teams or no longer be needed.  Joules is in the
process of consulting with colleagues to let them know how they will be
affected.  Where roles are no longer required, NEXT will be working with
those affected to ensure that they are considered for any suitable vacancies
at NEXT, whose Head Office is located close to Joules' headquarters in Market
Harborough.  It is anticipated that those remaining with Joules (i.e. the
Senior management, Product and Marketing teams) will continue to work from
Joules' existing offices.

 

NEXT plc contact:
Alistair Mackinnon‐Musson, Rowbell PR
next@rowbellpr.com (mailto:next@rowbellpr.com)

Tel: 020 7717 5239

 

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