Fashion giant Next has launched its online business in Europe.
Shoppers in Spain have been offered home delivery since the start of this week and consumers in France, Portugal and Germany are next in line.
The venture is further testament to the importance of Next’s online operations as a driver of growth. Last month, Retail Week revealed that the retailer, headed by Simon Wolfson (left), had begun selling fitted kitchens online (RW January 11).
A Next spokesman said: “We are testing deliveries in Spain and will see how this goes before heading to other markets. This is a low-risk, low-cost way of testing the market.”
Next’s full product offer will be available to continental customers at the same price as in Britain, but denominated in euro, with a delivery charge of €15 (£11).
Although Next has 142 overseas stores – primarily franchises in the Middle East and Asia – it has not developed a Western European store network.
Selling online gives the retailer a chance to expand without incurring overheads such as rents and staff costs. While Spain and Portugal’s home shopping markets are relatively immature, Germany’s is worth €24 billion (£18.14 billion), says Mintel.
Kaupthing analyst Matthew McEachran believes the initiative makes sense. He said: “Asos does about 10 per cent of its sales overseas without having an overseas operation. Next has all the nuts and bolts to present a strong home shopping offer.”
The retailer’s internet arm forms part of its Directory division, which last year generated sales of£774.5 million. Next has no plans to launch its full Directory business overseas at present.
* N Brown plans to offer international customers deliveries for the first time. It is eyeing Germany for its overseas debut.
BHS OPENS IN INDIA WITH M&S HOT ON ITS TAIL
Bhs has opened its first two stores in India as speculation mounts that Marks & Spencer is preparing a joint venture there with Reliance Retail.
Bhs opened the shops in Mumbai with franchise partner LK Pagarani, a Dubai businessman whose Al Maya Group runs 10 Bhs stores in the Middle East.
Sources close to the chain, which is owned by Sir Philip Green, said two more openings are earmarked for this year.
M&S – which is keen to up its presence in India – is thought by industry sources to be close to striking a deal with Reliance. M&S, which has a franchise agreement with Planet Retail, declined to comment.
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