GENDER PAY REPORT 2022

OUR COMMITMENT
Our employees are integral to achieving our business objectives and we aim to attract, retain and develop the best talent at
every level throughout NEXT. We are committed to creating an environment where all individuals feel welcomed, respectedand supported. This commitment is demonstrated in a number of ways, including:• Open and transparent pay and reward structures
We endeavour to ensure salary differentials between individuals in the business are fair and justifiable. Most roles within the business havean associated salary grid with differentials within the same role being determined by competency. Differences in salary between individuals
in the same role must be justified by levels of performance in that role.

• Developing our flexible working opportunities
We have introduced clear and practical ‘Working From Home Principles’ which allow business areas and their team members to takeadvantage of the flexibility that home working affords. This is considered the right thing to do when a team member can be moreproductive working from home.
In certain areas of our business it can be harder to attract females so, for example, in our IT Department we have increased part-timeworking opportunities and offer different shift patterns. Our ‘Back to IT’ recruitment campaign, aimed at those who are returning to work
after a career break, has resulted in a modest increase in the number of females working in ourIT Department.

• Support for working parents and carers
Our purpose built, high specification childcare nursery, ‘NEXT Steps’, located adjacent to our head office, continues to support our employeeswith their pre-school childcare arrangements. The nursery achieved an ‘Outstanding’ Ofsted rating from its most recent inspection andcurrently has over 200 children registered to attend.
We provide guidance and support for those employees who plan to take maternity, paternity or adoption leave. This includes offering
virtual group classes and workshops prior to taking leave and after returning to work, line manager coaching and pregnancy yoga.

• Training and development opportunities
The majority of our managerial appointments are internal promotions and we aim to invest in our staff to help them achieve their fullpotential. We have developed specific departmental training programmes, which provide our staff with the core skills to fulfil their roles.
Examples include the Product Department Buying Academy, customer experience training for our call centre colleagues, and a NEXT
Learning portal for our store staff. Several business areas also operate mentoring schemes.

• People, policies and practices
We continually review and update our policies and practices in order to achieve our aim of attracting, retaining and developing thebest talent.

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GENDER PAY REPORT 2022 (CONTINUED)
UNDERSTANDING THE GENDER PAY GAP
WHAT DOES THE GENDER PAY GAP MEASURE?
The gender pay gap is a measure of the difference in average pay of men and women, regardless of the nature of their work.
This is expressed as a percentage of men’s earnings, e.g. women earn x% less than men. A negative percentage indicates thatwomen earn more than men. The gender pay gap does not measure equal pay, which relates to the amount that men andwomen are paid for the same or similar jobs.
HOW ARE THE MEDIAN AND MEAN PAY AND BONUS GAPS CALCULATED?
The mean pay gap is a comparison of the average pay for a woman and the average pay for a man.
The median pay gap is a comparison of the hourly rate of pay for the woman in the middle of the line if all our female employees
stood next to each other in order of lowest hourly rate of pay to highest, and the hourly rate of pay for the man in the middleof the line if all our male employees did the same.
Mean and median calculations are also carried out when comparing bonus pay over a twelve month period. The proportion ofmen and women awarded any bonus pay over that period is reported.
HOW ARE THE PAY QUARTILES CALCULATED?
We also report the percentage of men and women in each pay quartile. Quartiles are calculated by listing the rates of pay foreach employee across the business from lowest to highest, before allocating that list into four equal sized groups of men andwomen and calculating the percentage of men and women in each of these groups.
The median and mean pay gap and quartile pay bandings are based on data from April 2022 only.
The bonus gap calculations required by the UK regulations are based on the bonus payments made in the 12 months to 5 April
2022 and are not full time equivalent adjusted.

2GENDER PAY REPORT 2022 (CONTINUED)PAY GAP & PAY QUARTILES – NEXT RETAIL LIMITEDDETAILS BEHIND THE GENDER PAY NUMBERS AT NEXT RETAIL LIMITED
We have found no inconsistencies with the pay for men and women doing equivalent jobs across our business and we areconfident that the men and women who work for us are being paid equally for equivalent jobs. If we look across our entire Next
Retail Limited workforce, the details behind our gender pay numbers are:
• 75% of our employees are women, with approximately 81% of these women working in our stores which is broadly consistent
with the demographics in the Retail sector. Looking just at this group of employees, the mean gender pay gap was 1.0%(2021: 3.1%*).
• As with many retail organisations, when we look across the NEXT workforce our gender pay gap is strongly influenced by
the fact that such a high percentage of our colleagues in stores are women. Therefore, overall we have a significantly larger
proportion of women than men in our lower paid roles.
• Although our overall mean gender pay gap is 31.2% (2021: 24.2*)%, the mean hourly pay gap within each quartile (detailed
in the table below and closer to a like for like comparison of roles), shows a much narrower pay gap than the overall pay gap,
both mean and median hourly pay gaps with women in the lower quartile being paid more than men, and women and men
earn the same in the lower middle and upper middle quartile.
• Our figures in 2022 include our store staff which have a significant proportion of our lower paid female employees.
Due to furlough, these employees were excluded from our figures in 2021 which has impacted the movement in our reportednumbers.
• 45% of male employees compared to 19% of female employees work in our head office. Head office pay rates are typicallyhigher than our stores due to the more technical nature of the roles. The majority of our head office employees fall within
the upper quartile in the table below.
• In the wider NEXT group, we have good female representation in our most senior roles and on the NEXT plc Board. For thereporting period women made up 50% of our NEXT plc executive directors, 40% of our total Board, and 43% of our seniorleadership team. In relation to our senior management and their direct reports, NEXT was ranked second in the FTSE WomenLeaders Review: Achieving Gender Balance (February 2023) and has consistently met the Board gender diversity target set.

* These 2021 figures included furloughed employees.

PAY

Lower Quartile

Lower Middle
Quartile

Upper Middle
Quartile

UpperQuartile

Total NEXT
Retail LimitedUK National ⧫Men24%

14%

18%

45%

25%-Women

76%

86%

82%

55%

75%

-Median Gender
Pay Gap-11.0%

0.0%

0.4%

21.9%

8.1%

14.9%

Mean Gender
Pay Gap

-1.6%

0.0%

0.3%

18.7%

31.2%

13.9%

⧫ Source: Office of National Statistics October 2022.

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GENDER PAY REPORT 2022 (CONTINUED)

BONUS PAY – NEXT RETAIL LIMITED DETAILSPROPORTION OF MEN AND WOMEN WHO RECEIVED BONUS PAY
All employees are eligible to participate in bonus arrangements and we operate several bonus schemes which aredesigned to be relevant for the specific area of the business to which they relate.
Percentage of MEN who received a bonus

69%

Percentage of WOMEN who received a bonus

89%

We are confident that men and women have an equal opportunity to participate and earn a bonus.

DETAILS BEHIND THE BONUS PAY GAP NUMBERS AT NEXT RETAIL LIMITED
Our bonus pay gap is strongly influenced by the balance of men and women across job roles. We have a significantly
larger proportion of women than men who work in our stores. In our stores we have a larger number and proportionof women than men who do not work full-time hours and are in our lower paid roles. Also, some bonus and incentive
pay structures are closely linked to seniority.
Other factors behind our gender bonus numbers:• The regulations require the gender bonus gap to be calculated using the actual value of bonus payments madein the 12 months to 5 April 2022 for each person rather than calculating a bonus pay per hour worked. They are
not therefore full-time equivalent adjusted.
• We have a much higher proportion of women working part-time versus men, and therefore receiving pro-rated
bonuses and longer-term incentive awards. We estimate that around 62% of our workforce worked an averageof 30 hours or less each week.
• If we calculate the mean bonus gap within each quartile (detailed in the table below) to get closer to a like forlike comparison of roles, this shows a narrower bonus gap than the overall pay gap for three out of four quartile
bandings. In fact, within the lower and lower middle quartiles, women earn on average 4.9% and 1.9% morebonus than men. The median bonus gap for the lower and lower middle quartile also shows that women earn on
average 4.7% and 2.6% more bonus than men.
BONUS

Lower Quartile

Lower Middle
Quartile

Upper Middle
Quartile

UpperQuartile

Total NEXT
Retail Limited

Men

19%

16%

15%

28%

19%

Women

81%

84%

85%

72%

81%

Median Gender Pay Gap

-4.7%

-2.6%

4.6%

41.5%

25.1%

Mean Gender Pay Gap

-4.9%

-1.9%

3.4%

56.9%

72.2%

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STATUTORY DISCLOSURES

3. Lipsy Limited

1. Next Retail Limited

2. Next Distribution Limited

Next Retail Limited employs the majority of our workforce inthe UK and primarily covers those employees based in ourretail stores, call centre and head office locations.

Next Distribution Limited employs staff who work in our UKwarehouses and logistics operations.

Mean

Mean

Median

2022

2021

2022

2021

Gender Pay Gap

31.2%

19.2%

8.1%

26.9%

Gender Bonus Gap

72.2%

63.3%

25.1%

59.0%

Pay Quartiles

MedianLower
MiddleQuartile

Upper
MiddleQuartile

Upper
Quartile

Men

24%

14%

18%

45%

Women

76%

86%

82%

55%

Proportion of Employees
Receiving a Bonus

Gender Pay Gap

8.9%

4.1%

4.0%

0.8%

Gender Pay Gap

44.0%

26.8%

Gender Bonus Gap

6.9%

9.1%

0.5%

15.7%

Gender Bonus Gap

71.6%

42.8%

Pay Quartiles

Lower
Quartile

Lower
MiddleQuartile

Upper
MiddleQuartile

Upper
Quartile

Men

55%

51%

56%

69%

Women

45%

49%

44%

31%

Proportion of Employees
Receiving a Bonus

Lower
Quartile

Lower
MiddleQuartile

Upper
MiddleQuartile

Upper
Quartile

Men

7%

4%

12%

11%

Women

93%

96%

88%89%

Proportion of Employees
Receiving a Bonus

83%

MEN

11%

WOMEN

89%

WOMEN

86%

WOMEN

4%

31 March 2023

2022

2021

MENGroup Finance Director, Next plc

2022

2022

69%

Amanda JamesMedian

2021

MENI confirm this information is accurate.

Mean2022

Pay Quartiles

LowerQuartile

Lipsy Limited employs staff who work in a fashion and beauty
business mainly from our London offices.