Next (LON: NXT) shares were initiated with Market Perform at Bernstein after the investment bank commented on the retailer’s dominant market position in the UK.

Analyst William Woods also initiated a 7,000p price target for the firm, stating that while Next is “unexciting”, it is well run and holds a dominant market position in the UK. The analyst adds that Next has managed the shift to online well in comparison to its peers.

Next holds a more premium position in the market, but Bernstein adds that the group has stuck to strong pricing principles with low levels of discounting. Given the current cost-of-living crisis in the UK, premium retailers have come under threat from consumers switching.

However, recent Q1 results for Next showed just a 0.7% decline in full-price sales, with the group maintaining guidance of a -1.5% decline in full-year sales.

Next’s share price has been rather resilient, growing almost 10% so far this year.

By Jamel Boughedda