Next says it is looking to open at least eight more of its successful Home and Fashion stores over the next few years.
The retailer made the announcement as it revealed an overall sales increase of 7.2% to £4,027.8m in the year to January 2015 and a 12.5% hike in pre-tax profit to £782.2m. Sales and profit at Next Retail (as distinct from Next Directory and Next Brand) rose by 4.8% and 10.4% respectively.

The retailer said that an unusually large percentage, 75%, of new space was down to its large-format Home and Fashion stores.

"These side-by-side stores give the company the opportunity to re-define the way we trade out of town, investing in the architecture of our buildings and the quality of shop-fit," it stated.

"We have radically changed the appearance of existing retail park buildings, adding glass frontages, light-wells, and improved facades. We have also built two stores from the ground up (Hedge End and Maidstone), and these have enabled us to create beautiful and iconic buildings.

"Over the next three years we hope, subject to planning, to open at least eight more of these bespoke new stores."

Sales at Home stores opened over the last 12 months have beaten targets by 13%, and profitability is expected to come in at 20%, with payback on the net capital invested predicted to be 21 months. Similar profitability is forecast for new fashion store openings, where sales are 9% above target.

Next said that "it would be a mistake to be over-optimistic at this stage" about the year ahead, but went on: "Whatever the sales environment in the current year, the company has plenty of opportunities to lay foundations for future growth."