Next reports a "solid" performance over its last financial year to January 2016, with Directory (online and catalogue) sales up 8% and Retail 1%. Total group sales rose by 3% to ￡4.1b. Despite this, growth was lower than predicted.

The year saw Next invest ￡151m in new stores, a new warehouse and systems. Net new retail space contributed 2.4% to growth.

The retailer estimates that it will add around 275,000 sqft of net trading space in 2016/17, and a further 350,000 in 2017/18.

Profit growth was modest, while share price remained above Next's declared share buyback price limit for much of the year.

David Keens and Jonathan Dawson left the board at the beginning of the year, and Amanda James joined as David’s replacement as group finance director.

"2016 will be a challenging year with much uncertainty in the global economy," comments board chiarman John Barton. "For Next it makes it particularly important that we remain focused on our core strategy of delivering long-term sustainable growth in EPS, investing in the business, improving the design and quality of our products and returning surplus cash to shareholders."

Chief executive Lord Wolfson adds: "The year ahead may well be the toughest we have faced since 2008."

Martin Lane, a representative at www.money.co.uk, shares his opinion on the report: “Shops like Next have to invest heavily in the online arms of their businesses and find ways to personalise their customers shopping experience if they really want to stay ahead of the game.

“The competition is fierce and the fact Next still produce a paper directory is quite surprising and feels like a tired, out-of-date strategy. For the brand to stand the test of time they really need to give shoppers something they can’t get anywhere else.”