No Christmas sales boom, Next warns

Next has poured chilly water on the prospect of a festive period product sales growth following warning that source chain problems and shortages of lorry drivers and warehouse employees would keep back again progress. 

The retailer posted a 14pc raise in product sales in the past five months as opposed to the exact interval pre-pandmeic, but flagged a slowdown in trade for the relaxation of the calendar year. 

Aspects including labour shortages and the wider source chain disruption, as very well as dwindling pent-up desire and frail customer confidence, would signify a product sales raise of just 10pc in the following quarter, Next explained.  

Inventory availability experienced enhanced but remained “hard”, the firm explained. It warned that price tag rises in “critical items” these kinds of as gasoline may “average desire” and reduce product sales progress via the festive period. “The consequences of pent‐up desire are most likely to continue to diminish.” 

Nevertheless, Next preserved its full-calendar year revenue direction of £800m as it posted a 17pc rise in product sales in the 3 months to Oct 31 as opposed with the exact interval in 2019. 

On line product sales had been also up by just about 50pc in the calendar year to Oct, boosted by third-bash brand name purchases, when in-retailer product sales had been down near to 30pc.