Next posts rise in sales but warns of difficult year ahead

UK retail outlet Next has posted another rise in sales ahead of expectations over the Christmas period, but warned that a price increase is on the cards for 2025 as it looks to overcome raised costs following last year's Budget.

- KARL MATCHETT

The company also noted it expects its own growth to slow this year and cautioned the same will be true countrywide as shops and organisations lift prices, causing a slowdown in consumer spending.

Next said: “We believe that UK growth is likely to slow, as employer tax increases, and their potential impact on prices and employment, begin to filter through into the economy.”

The company expect a rise of around £67m this year on its wage bill as a result of increases to the minimum wage and National Insurance contributions, or £73m for a full year impact. To offset that, a 1 per cent increase in prices of its products will recoup around £13m, with a further £23m saving to be made through “improved working practices and other operational efficiencies in our warehouses, distribution networks and stores”.