Next blames clothes price rises on Budget wage costs

Published On Jan 7, 2025, 2:55 AM

Next is raising prices on certain clothing items by an average of 1% in response to a £73 million increase in staff wages and taxes due to recent government measures, including higher National Insurance contributions and an increase in the National Living Wage. Despite this price hike, the company expects its profits to rise by 3.6%, reaching over £1 billion next year. It notes a shift in consumer behavior towards buying fewer but slightly more expensive items, and anticipates that UK economic growth will slow down as these tax increases filter through. Sales for the nine weeks ending December 28 rose by 6%, driven largely by online shopping, while physical store sales fell by 2.1%.