IT’S the retailer that appears to have found the magic ingredients to deliver strong returns time and time again despite the current climate of inflationary pressures and disappointing summer weather which is bad news for purveyors of fashion at this time of year.

However, the high street chain Next, led by its highly regarded chief executive Lord Wolfson of Aspley Guise, has long held a reputation for under-promising and over-delivering, and is considered a bellwether for the UK high street.

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Analysts at AJ Bell gave their take on the clothing and homewares retailer’s success: “It has a reputation for selling clothes that are considered good quality and will last a long time, something that’s important to many shoppers. The ordering and returns system runs smoothly and it also knows how to get the most from a store network.

“Combine these factors together and you’ve got a business that stays one step ahead of the competition.”

That Next’s encouraging second-quarter results come at a time when fashion retailing has been affected by the dismal weather keeping shoppers away from stores when they would normally be out purchasing summer clothing makes the retailer’s performance all the more remarkable.

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Next once again exceeded its own expectations to deliver a healthy 3.2% increase in sales – beating its forecasts by £42 million – compared to the 0.3% drop the retailer had anticipated given last summer’s “exceptionally favourable” weather.

And this performance saw the retailer increase its annual forecast by £20m to £98m, up 6.7% on last year, despite disappointing summer weather this year and ongoing headwinds from the cost of living crisis and inflationary pressures affecting consumers.

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AJ Bell also pointed to much of Next’s success in its second-quarter period coming from its overseas business where growth rates were in double-digits. It noted: “Many people might not realise Next has international operations and is active in 34 countries. At 1.7 million overseas customers, it is certainly not a marginal player, and this amount compares to approximately one-fifth of its UK’s online customer base.”

At Begbies Traynor, partner Julie Palmer was glowing in her praise of the retail stalwart’s ability to navigate its business through the current environment, noting: “Next’s ability to strengthen and adapt both its online and bricks-and-mortar operations has meant it continues to thrive as it heads towards another year of record profit.

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“Looking ahead, Next will be hoping the warmer weather continues. Fortunately, the retailer has an impressive track record of resilience and adaptability that puts it in prime position for a rebound in consumer spending.”

Can Next continue to hold its position as a bellwether of the UK high street? With its strong bricks-and-mortar stores, highly effective online business and a well-performing and growing overseas presence – and in Lord Wolfson a chief executive who appears to have bottled a formula for retail success that others would dearly love to get their hands on – it seems like a good bet.