New Look aims to double in size and be bigger than Next

New Look, the mid target fashion retailer, has revealed plans for expansion that would see them overtake Next in the UK. Chief Executive Carl McPhail said, “We have doubled in size in 5 years and we are going to get much bigger.” The chain has 3.5m sq ft of retail space, and aims to increase that to 7m sq ft. This compares to the 5.5m sq ft that is currently held by Next.

Mr McPhail also stated that the re-engineering of New Looks supply chain was instrumental in its proposed development plan. The retailer currently has 200 suppliers with a core base of approximately 20. Product lines are designed in London but only 5 pc are manufactured in the UK. Designs are sent to factories in China or India. The process has been refined to such an extent that getting an article from design to on-shelf can happen in as little as 6 weeks. The success of this process is credited in part to effective partnerships with suppliers. Being a cash-generative business, New Look pays it’s suppliers in between 65-75 days, with some being paid sooner than that. Mr McPhail indicated that the cost of shipping from China influenced the company’s supply chain choices. Shipping costs have come down from $1200 (£720) per container to $400 in recent months.

 

New Look recently opened its 1000^th store in Bath, and suggested that it could open a further 670 stores outside of the UK.

 

Catherine Dickinson, November 2009

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