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restaurants over retail
Fashion giant Next expected to report fall in sales this week as families
choose restaurants over retail
Fashion giant Next is expected to report a fall in sales this week as
families choose restaurants over retail.
The High Street is suffering from unseasonably warm weather, increasing
internet competition and changing shopping habits.
And although Next – which reports its third-quarter results on Wednesday – is
the biggest operator in the industry, analysts do not believe it is immune.
Experts at Santander are expecting the retailer to announce a 4.5 per cent
fall in Next brand sales and a 7.6 per cent drop in shop takings.
They believe performance in its directory business will be unchanged. Analyst
Rebecca McClellan said that ‘prospects for this pending third-quarter sales
update are inevitably weak’.
Next boss Lord Wolfson has warned that fashion retailers may feel as if they
are ‘walking up the down escalator’ this year. He has also claimed Next could be
forced to hike its prices by 5 per cent due to the fall in the pound.
Earlier this month, research group Kantar Worldpanel warned the fashion
industry had suffered its steepest decline since 2009. It comes after Wolfson
said the public would rather spend money on experiences, such as holidays and
eating out, than clothes.
