Next PLC NEXT Total Platform Accelerates Joules Transition (4146X)
25 April 2023 - 10:30PM
UK Regulatory
TIDMNXT
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
Tel: 020 7717 5239
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END
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