Next predicts bleak future

High street retailer Next has said that tough trading conditions persisted as like-for-like sales continued to decline. The British chain said that it would add new shopping space and improve margins of its mail order business, Next Directory, while controlling costs and maintaining margins. Like-for-like sales were unaffected by new store openings in the eighteen weeks ended 18 March. However, the group warned that the same period last year included Mother's Day and pre-Easter shopping.

Although the group had warned that last year would be a difficult year, it still managed to achieve a rise in pre-tax profits of 5.8 percent to £449.1 million for the year on revenues of £3.1 billion, up 8.7 percent from the previous year. Chief executive Simon Wolfson said that the group had reduced average prices by 5 percent but had maintained margins by improving labour efficiency, reducing premium pay and improving logistics.