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Next PLC on Tuesday said it plans to launch Total Platform earlier than previously thought, as it reported progress in reducing lead times for delivery. The FTSE-100 clothing and homewares retailer said it plans to launch Total Platform - which allows other brands to use Next’s large-scale IT, warehousing and distribution infrastructure for their own e-commerce operations - in October 2023. This is earlier than its original planned launch for March 2024. Next said this is because its technology teams have made ‘significant’ progress in reducing the lead times for the delivery of Total Platform by UK lifestyles retailer Joules Group PLC. Next in December bought a 74% stake in Joules for £34 million, after snapping up assets of furniture seller Made.com for £3.4 million. To date, Total Platform has ‘focussed on providing website, warehousing, distribution, contact centre, online advertising and retail services’, while the scope of planned services for Joules ‘will be significantly wider’, Next said. It said Joules will use Next’s product systems, finance, payments and accounting systems and human resources system, in addition to existing Total Platform services. On cost savings and restructuring, Next said: ‘We had always intended that Total Platform would deliver material cost savings to Joules. Following the decision to deliver much broader services to Joules, we are now planning for those savings to be significantly greater than originally anticipated. ‘The full benefit of these savings will not be felt until the beginning of 2024 so are unlikely to materially affect the current year’s profit of the Next group.’ As a result, Next said a number of tasks performed by Joules personnel will be absorbed into Next teams or will no longer be needed. It said it is consulting with colleagues and will let them know who will be affected. Shares in Next were down 0.6% to 6,828 pence each in London on Tuesday afternoon. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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