NEXT plc is a retailer of mid-price clothing, accessories, and home products and the second largest clothing retailer in the UK. NEXT has 2 main segments, department stores (NEXT Retail) and online/catalogue purchasing (NEXT Directory) with 64% and 27% of revenues respectively. Because of higher VAT and lower consumer discretionary income, UK retailers face declining same stores sales while also being hit by rising costs from energy and cotton prices, and therefore must depend on store expansion and efficiency savings to increase profits. The company has been focusing on the synergies between the Directory and Retail segments to cut costs and streamline the company, which has increased margins. The company has also opened its own production facility in Asia, to partly alleviate supplier pressures and production bottlenecks which the industry is currently facing. NEXT Directory is showing good progress with strong growth and should be one of the main growth drivers in the future.