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Next workers underpaid following payroll errors

On this episode of Talking Shop, we're joined by Dan Cate, CEO and Founder of SoldThrough. Dan is a heavyweight retail executive who has spent decades steering the merchandising and digital operations of America’s most iconic retail institutions, from Saks Fifth Avenue and Bloomingdale’s to Century 21 and Lord & Taylor. Today, through his platform SoldThrough, Dan helps international fashion brands cross the Atlantic and crack the notoriously brutal U.S. retail landscape. We break down his journey from the shop floor to the C-suite, the operational indicators that prove a brand is truly ready for international expansion, and how to navigate a fragmented American market without destroying your margins. We also discuss how to balance localised inventory with central efficiency, and the one non-negotiable metric that tells you a product has found genuine market fit.

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Next workers have been underpaid for “months” after a series of payroll errors from the retailer, according to The Sunday Times.

The problem reportedly arose after a misstep with the company’s new Oracle payroll system in February. There were also deductions of some staff pension contributions without investment into retirement pots, The Times reported.

It comes during the midst of a cost of living crisis, as employees are struggling with rising inflation levels.

One worker was reportedly underpaid by more than £200 pounds, and “expressed irritation that Next’s store managers and head office staff were treated to a party with live bands, music and food at the NEC in Birmingham last week”.

One insider told The Sunday Times: “Most of us haven’t been paid right since the change in system. A lot of people are using food banks or putting holiday days in because they can’t afford to fuel their cars to get to work.”

Next said it was confident that no staff would lose out because of errors made in their pension contributions.

A company spokesman said. “We have experienced a number of issues with our new payroll system and have been tackling them as a matter of urgency.

“This is one of the very few instances where Next has outsourced critical software and we have learnt some important lessons about integrating our in-house applications with third-party platforms. We are acutely aware of the problems these payroll errors have caused some of our colleagues. We sincerely apologise to all those affected.”

 

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