Next expects customers to rein in spending

Fashion chain Next warned today of increasing sales pressure this year as struggling shoppers tighten their belts.

The high street giant is bracing itself for the impact of soaring fuel and household bills and more expensive mortgages on its customers.

Next said its main customers – aged between 25 and 45 – were likely to be hit heaviest by higher costs and debt burdens.

It predicted like-for-like sales declines of between 4% and 7% across its high street stores in the first half of this year – worsening from the 3.2% decline seen in the 12 months to January.

Next said: “We can see no reason why there should be any recovery in consumer spending during the year ahead.”