Next has reported a ten per cent increase over the same period last year in its full price sales in the nine weeks to 27 December, ’25. This was ahead of its forecast, but Next also warned that UK sales could not be expected to grow this year due to rising unemployment, which it expects will weigh heavily on consumer spending. It also re-emphasised that it had benefited from an influx of customers due to the cyber attack which struck Marks & Spencer earlier in 2025.
The accomplished retailer, which owns multiple brands, has stakes in others, as well as selling third-party brands via its marketplace operation, and is widely watched and held in high regard by its competitors. Next says that it now expects to report full-year profits of £1.5bn, which is slightly ahead of its previous forecast in a year that has seen it increase its guidance five times.
Meanwhile, Next is understood to have expressed interest in acquiring the brand and assets of LK Bennett. The mid-market fashion retailer has been operating from its own stores as well as from a small number of concessions over the past year, but has seen demand fall and is reportedly about to appoint administrators. It has been working with Alvarez & Marsal since mid-December to seek a buyer. TFG, which operates Hobbs, Phase Eight and White Stuff, is also said to be keeping an eye on developments as it too could find benefit from acquiring the LK Bennett brand.
Fashion chain River Island is progressing with the closure of 32 underperforming stores this month as it works with PricewaterhouseCoopers on its formal restructuring plan. Further closures could follow as the business pursues a reset. Seasalt, however, has told the market that it is looking to open further stores.
What we can conclude is that many consumers have not been as free with their money this ‘golden quarter’ as they have been in the past. Purchases have been more considered. Family groups have increasingly set price limits on gift spending, with many opting to buy practical items or gift cards rather than see their money wasted on choices that don’t chime with recipients. There has also been significant growth in the pre-loved sector, where better quality items can be found at low-end prices.
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