Retail Sales Slow As Shoppers Tighten Belts In February |Sky News|Business
I think the pressure behind it all Jess is that High Street labels are suffering. Clothing for instance has fallen for a fifth month in succession despite massive discounting in January. Next has 400 stores in the UK plus others overseas under franchise. Over 50,000 employees. Of course they are feeling the pinch.
Stores without a significant High Street presence are able to weather the high consumer taxation better. Individually they don't turn over anything remotely as much but their overheads are significantly lower meaning commissions remain significantly higher.
Now a simple admission from the merchant that stormy waters were ahead of them would have cut more ice with affiliates, particularly when commissions were savaged at the high point of the sales drive, rather than the way things were handled. However what has been done has been done so now Next need to re-assess their marketing.
It'll be interesting to say the least, to see how they turn things around and what role the online marketing channel will have in reviving corporate fortunes. Their High Street presence is sapping their productivity and wealth. Store closures ahead?