One of the largest clothing and home products retailers in the U.K. by sales. Its well-entrenched market position in the U.K. clothing and footwear retail market. A significant competitive advantage through its well-developed mail-order directory and online businesses. Difficult trading conditions, due to the fashion-oriented and highly competitive nature of the U.K. apparel and general merchandise retail market. Strong free cash flow generation. Moderate levels of maintenance capital expenditure (capex) compared with spending on new stores, systems, and discretionary capex. Credit ratios benefit from deconsolidating captive finance operations related to the directory business. Focus on increasing shareholder value through regular and special dividends and share buybacks. The stable outlook on U.K. clothing and footwear retailer Next PLC reflects S&P Global
