Could year-round markdowns become the norm at high street giant?
Fashion powerhouse Next is evaluating whether to jettison its long-established policy on Sales, the timings of which are famously restricted.

The stance has made Next's Sales legendary, prompting shoppers to queue in the early hours to snap up bargains. But it is understood that the retailer is working with an external company to assess the potential benefits of cutting prices as and when necessary.

One source familiar with the project said the retailer was analysing whether it would be sensible 'from a margin capture point of view to take an in-season markdown approach' as required.

The benefits of a switch would need to be weighed against the chances of a City backlash if investors were spooked by the abandonment of such a long-standing strategy.

Consumers, conditioned to expect Next Sales to be strictly rationed, may also question the retailer's reputation for quality if they see product marked down more frequently. At present, Next holds four Sales a year - post-Christmas, end of summer and two one-day mid-season sales in spring and autumn.

Next chief executive Simon Wolfson insisted he was happy with the existing Sale strategy. He dismissed the speculation, saying: 'Price integrity is very important to us.'

Wolfson said the first day of the current Sale had been 'very good' and the week had finished in line with expectations.

Next kicked off the sector's Christmas trading updates on Wednesday, when it trumpeted that full-year profits would come in above market expectations at between£435 million and£450 million. However, the retailer assumes that comparable sales will run at minus 3 per cent for the next six months.

Sales in the 251 stores not affected by new openings slipped by 3.2 per cent between August 1 and December 24.

How fashion fared

NEW LOOK

Chief executive Phil Wrigley said: 'We've kept stocks frighteningly tight and we're significantly less promotional than last year.' Christmas like-for-like sales were flat, in line with the chain's overall performance for the year.

INDITEX

The group had more stores open on Boxing Day than ever before. The first three days of the Sale performed well, but sales dropped off on Wednesday and Thursday because of snow in some areas, before picking up again.

ARCADIA

Thought to have performed better than last year over the two-week period pre- and post- Christmas Day. Most of its fascias held off from launching Sales until Christmas Eve or Boxing Day. Topshop performed particularly well.

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