To date, TP has focussed on providing website, warehousing, distribution, contact centre, online advertising, and retail services.  The scope of the planned services for Joules will now be significantly wider, Next said in a press release.

In addition to existing TP services, Joules will use the following Next systems—product systems; finance, payments, and accounting systems; and HR systems.

Product systems encompass stock planning, budgeting, contract management, progressing, imports, and inbound administration. They will enable Next to take advantage of the group’s inbound freight and duty arrangements.

Finance, payments, and accounting systems include accounts payable services, management information, profitability analysis, and more. HR systems will, in time, include store man-hour rota and planning systems and payroll. At this stage, Next plans to provide all these services to Joules on a cost-plus basis.

Joules will remain an independent company (74 per cent owned by Next) with its own board and management team. However, the team, led by founder Tom Joule, will be entirely focused on product, marketing, and brand development.

The functions that will continue to be wholly managed by the Joules’ teams are design, buying, garment-technology, and merchandising; brand marketing, styling of photography, branding, social media and PR, shows and events; website content and look-and-feel; and wholesale and sales through third parties.

Next had intended that Total Platform would deliver material cost savings to Joules. Following the decision to deliver much broader services to Joules, Next is now planning for those savings to be significantly greater than originally anticipated. The full benefit of these savings will not be felt until the beginning of 2024, so they are unlikely to materially affect the current year’s profit of the Next Group.

Fibre2Fashion News Desk (NB)