As Next announced its first-half results this month, the home and fashion retailer revealed that large-format out-of-town retail sites were key to its strategy going forward.
While the DIY giants are offloading surplus space and downsizing their portfolios in favour of smaller-format stores, Next has announced plans to continue the roll out of its large-scale home and fashion stores but stresses its move away from a shed-type retail outlet.

It first trialled the new format at Shoreham in 2011, where the superstore comprises a two-floor large Home and Garden store, attached to a conventional two-storey fashion store. The company said: "This large format is becoming more important to the group and, this year, will account for around 70% of net new space. Some of the new sites we have secured require the construction of a new building."

It added: "We intend to use this as an opportunity to invest in the architecture and external appearance of our stores. Our aim is to redefine what can be achieved out of town, moving away from the traditional 'shed' format to architectural buildings that reflect the design aspirations of our product ranges."

Next had a strong first half, with total sales up 10.3% for the six months ending July 2014. The retailer reported an increase in its home sales for the first half, boosted by an improved housing market. The results statement explained that new retail space contributed 3.8% to the growth of retail sales.

Next said: "Since the beginning of the credit crunch in 2008 we have been aggressively acquiring new space for our Home business. Over the last six years we have added 1m sq ft of new Home space. This takes our total Home trading space to 1.7m sq ft, around a quarter of the company's total space. In addition to providing new routes to market, our new larger Home stores allow us to expand our Home ranges; in particular big-ticket items, such as sofas, living room and bedroom furniture."

In August Next opened its first design-and-build out-of-town store at Hedge End Retail Park, Southampton. The initial response has been very encouraging, said the firm. Two further design-and-build stores will open within the next 12 months; in Maidstone and High Wycombe. A similar store is also planned for Norwich in 2016 and several more are said to be under negotiation with landlords and planners.