The ratings on U.K.-based retailer Next PLC reflect Standard&Poor's Ratings Services' view of the group's "satisfactory" business risk profile and "intermediate" financial risk profile. Next's key business strength is its position as the second-largest player in the U.K. clothing retail market after Marks&Spencer PLC (M&S; BBB-/Stable/A-3). In addition, Next benefits from its strong brand image with an emphasis on high quality and product innovation, coupled with a strong presence in the high-growth online sales channel. However, these strengths are partially offset by the intense price competition prevalent in the U.K.'s fragmented apparel retail market. Furthermore, the possibility of unsuccessful product ranges due to ever-changing fashion trends and the discretionary nature of most clothing purchases are inherent
