Fashion retailer Next has reported a fall in sales and expects business to continue to be poor next year as a recession looms.
Fashion retailer Next has reported a fall in sales and expects business to continue to be poor next year as a recession looms.
The company said like-for-like sales, which ignore the impact of new store openings, in the 14 weeks to 1 November were down 4.4% from a year ago.
The company said like-for-like sales, which ignore the impact of new store openings, in the 14 weeks to 1 November were down 4.4% from a year ago.
Next said that rising unemployment and falling house prices would lead people to save more and spend less.
Next said that rising unemployment and falling house prices would lead people to save more and spend less.
However, it added that falling food and fuel prices would help shoppers.
However, it added that falling food and fuel prices would help shoppers.
"On balance, we... expect negative like-for-likes (sales) to continue throughout next year, though not necessarily at any worse rate than the current year," the company said in a trading update.
"On balance, we... expect negative like-for-likes (sales) to continue throughout next year, though not necessarily at any worse rate than the current year," the company said in a trading update.
Next said that the weaker pound would mean higher input costs for the company, as the fall in sterling makes goods sourced overseas more expensive.
Next said that the weaker pound would mean higher input costs for the company, as the fall in sterling makes goods sourced overseas more expensive.
UK retailers are bracing themselves for a tough Christmas trading period as consumers tighten their belts.
UK retailers are bracing themselves for a tough Christmas trading period as consumers tighten their belts.
On Tuesday, Marks and Spencer said that its half-year profits had fallen 34%, However, on the same day, budget retailer Primark reported a 4% rise in annual like-for-like sales.
On Tuesday, Marks and Spencer said that its half-year profits had fallen 34%, However, on the same day, budget retailer Primark reported a 4% rise in annual like-for-like sales.
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