Next has announced that it achieved a 4.5 per cent increase in its full price sales in its first half, to the end of July. Its total sales including markdowns came in at 3.9 per cent up on last year’s, with group profit before tax up by 0.5 per cent. Online sales had risen by 16.8 per cent to account for £892.3 million of the overall total of £1.98 billion generated during the period.
The retailer did concede that sales in its high street store continue to be challenging and attributed its ‘over-performance’, against its guidance, to the hot summer. Adding that it now expects full year profit before tax of £727 million.
“The UK retail market remains volatile, subject to powerful structural and cyclical changes,” commented CEO Lord Wolfson. Adding, “The fact that our retail sales have only fallen by 10 per cent in a period where like-for-like sales declined by 32 per cent is because we have continued to invest in profitable new space. The disciplines we have imposed on this investment programme have stood us in good stead.”
In response to challenging retail conditions, the business confirmed it will close seven of its clearance stores as their leases come to an end and will also close one more of its mainline stores whilst delaying the opening of one new store. In the longer term, it will focus on maximising opportunities for online growth.
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