British Retailer Next Will Leave the Russian Market
OREANDA-NEWS The operator of the British networks Next and Next kids in Russia plans to close stores, told sources in the commercial real estate market. This may happen by July this year.
Olga Antonova, Director of the Crocus group real estate Department, is also aware of the planned closure of the network. According to her, the company received an official notification about the plans to close Next stores in connection with the termination of the activity of this brand in Russia. The closure is planned for 2019, the exact date has not yet been determined. At Crocus Group, the retailer leases space in shopping centers in VEGAS, Russia and on the Kashira highway. Now, according to Antonova, the company is negotiating to replace the tenant.
The Next office also did not comment on the situation.
The company reported on the difficulties of doing business in the Russian and Ukrainian markets in the financial statements for the 2015 financial year. Then the growth rate of international online sales was significantly lower than the previous year, which the company attributed, in particular, with the devaluation of local currencies in Russia and Ukraine.
The Next trading network was founded in 1982. According to the company, under this brand now operates more than 500 stores in the UK and Ireland, more than 200 — abroad in 40 countries. In the 2018 financial year (ended January 27, 2018), the company's revenue remained at the level of the previous year and amounted to £4.1 billion, net profit decreased by 7%, to £592 million in Russia, the retailer has been operating since 2006. Its local partner - founded in 1999, the company "Monex trading", which is part of the middle East Alshaya Group (develops franchise brands such as Mothercare, MAC, the Body Shop, Victoria's Secret, etc.). According to the latest available in the SPARC data, in 2017 the revenue of "Monex trading" remained at level of last year and amounted to RUB 16 billion. According to the official Russian version of the site, Next and Next kids now operates 24 stores in Russia.
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