Next, the prominent British clothing retailer, achieved a significant milestone on Thursday, reaching a billion-pound profit, a testament to the company’s strong performance. However, this financial triumph has also raised concerns about the company’s future, as investors begin to question the absence of a clear succession plan for Simon Wolfson, the CEO who has led the company for nearly a quarter of a century.
Wolfson, 57, joined Next in 1991, working his way up from the shop floor to become the company’s leader. Under his stewardship, Next navigated the fluctuating tides of Britain’s economy, notably expanding its online business, increasing its share price by twelve times, and positioning the company for further international growth. Despite his incredible track record, investors are starting to worry about the company’s long-term direction should Wolfson, who writes Next’s detailed 60-page annual reports himself, decide to step down.
“Simon is arguably one of the most successful and enduring CEOs in the FTSE 100,” said James Goldstone, fund manager at Invesco, one of Next’s top five investors. “The flip side of this longevity is the inherent risk when such a pivotal figure might one day leave the company.”
The unease is further compounded by the limited public presence of other senior executives at Next. Investors, some of whom have expressed concerns to Reuters, say the lack of interaction with the broader leadership team below Wolfson makes it difficult to gauge the depth of succession planning within the company.
Adding to the speculation, Wolfson’s sale of over £29 million worth of Next shares in September last year fueled rumors of a potential exit strategy. Some believe his political ambitions, with his position as a Conservative Party peer in the House of Lords since 2010, may also play a role in his future plans.
“There is a reasonable amount of key man risk with Simon,” said Will McIntosh-Whyte, multi-assets fund manager at Rathbones Asset Management, another shareholder in Next.
When pressed about succession planning, Wolfson remained tight-lipped. “It’s unhelpful for companies to discuss these matters publicly,” he said, adding, “I’m only 57.”
Limited Visibility into Leadership Depth
The company’s senior executives include Richard Papp, group merchandise and operations director, Jane Shields, group sales, marketing and HR director, and Jeremy Stakol, group investments, acquisitions and third-party brands director. However, many investors have pointed out that the lack of engagement with these individuals, coupled with the company’s decision not to host a Capital Markets Day, means that shareholder confidence in the strength of Next’s leadership bench is uncertain.
Christos Angelides, the CEO of Reiss—where Next holds a 72% stake—is another potential successor in investors’ eyes. Angelides, a former Next employee of 28 years, is regarded highly by Wolfson and the investment community alike. But Next’s guarded approach to promoting internal talent or showcasing its executive team leaves much to be desired in terms of clarity on succession.
One prominent investor believes that Wolfson’s past statements indicate a long-term vision for the company, suggesting that it does not rely solely on its CEO. “While we may not have full visibility on the bench strength at Next, we sense that Simon has a capable executive team around him,” they remarked.
Yet, the company’s reluctance to disclose more about its senior leadership could be an attempt to avoid revealing its talent to competitors or creating divisions within the ranks. As one investor noted, “If you’re advertising your top executives to reassure investors, you’re also advertising them to your rivals.”
The official “key personnel” section of Next’s website features only Wolfson, Blanchard, and Chairman Michael Roney, with no mention of the broader leadership team.
A Strong Commitment to the Company’s Growth
Despite these concerns, many investors remain confident in Wolfson’s commitment to Next, citing his deep passion for the business. One source familiar with the CEO’s work habits described Wolfson as having an encyclopedic knowledge of the company’s operations, even down to the lease lengths and rental agreements for each store.
Wolfson’s focus on Next’s expanding international market and its rapidly growing Total Platform business, which supports third-party retailers selling goods online, has provided him with fresh opportunities that keep him engaged in the company’s future.
“It’s not normally a time when you’d hand over control when you have such an exciting opportunity ahead,” said Ben Preston, fund manager at Orbis Investments, a leading investor in Next. Wolfson’s involvement in these initiatives only adds to his ongoing enthusiasm for the role.
Although his decision to sell shares has raised questions, Wolfson’s continued significant stake in the company—nearly 1%—suggests his vested interest in its ongoing success.
“He still has plenty of skin in the game,” said one investor, underscoring Wolfson’s ongoing commitment to Next’s future, even as the company faces questions about its leadership transition.
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