Next sales surge even as inflation weighs on shoppers

Next went into the pandemic warning it presented the global retail industry with its biggest threat in nearly half a century.

Fashion chain Next said store sales soared in the first quarter as stores stayed open following the end of pandemic restrictions, even as inflation squeezes shoppers’ disposable income.

The clothing and homewares chain said sales across Ireland and the UK jumped by 285% in a strong start as it reiterated it expected annual pretax profit of £850m (€1bn) in the year through January.

Full-price sales also rose 21% despite the promotional environment which earlier this week saw Joules, a smaller retail rival, warn on profits. Although online sales fell in the period, compared to last year when people locked down at home splurged on the internet, they are still up on pre-pandemic levels.

Next went into the pandemic warning it presented the global retail industry with its biggest threat in nearly half a century but emerged a winner as consumers shopped online and stores bounced back from forced closures. 

The retailer tends to be cautious typically and lowered its profit and sales guidance in March as the war in Ukraine and record inflation dimmed its outlook.

Next operates hundreds of stores across Ireland and the UK, along with a large domestic and international online division selling its own range of fashion, as well as third-party brands. It also uses its infrastructure network to help rival brands sell their goods online.

• Bloomberg