Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Next warns of 1% price increase as budget wage bill soars by £67m

by January 7, 2025
January 7, 2025
Next warns of 1% price increase as budget wage bill soars by £67m

Retail giant Next has defied expectations for the crucial Christmas trading season, posting stronger-than-forecast sales but cautioning that a spike in wage costs will lead to higher prices this year.

Full-price sales at the clothing and homeware chain rose 6 per cent in the nine weeks to 28 December, beating City forecasts of 4.5 per cent. This growth – fuelled largely by online and overseas performance – led Next to raise its annual pre-tax profit guidance by £5 million to £1.01 billion.

Despite celebrating its tenth consecutive profit upgrade in the face of cost-of-living pressures, Next struck a note of caution, citing a £67 million increase in wage costs for the year to January 2026. The full-year impact will reach £73 million, driven by a planned hike to employer national insurance contributions and the minimum wage from April.

In response, Next told investors it would raise prices by 1 per cent to help offset these additional costs, warning of a potential drag on UK economic growth as higher employer taxes filter through to prices and employment decisions.

Full-price sales for the coming financial year are initially projected to rise by 3.5 per cent, with pre-tax profits of almost £1.05 billion for the year to January 2026. Next, led by chief executive Lord Wolfson, remains one of the first major listed retailers to report on its Christmas trading performance. Tesco and Marks & Spencer are set to publish updates soon, while J Sainsbury will follow on Friday.

Despite the seemingly upbeat holiday trading, the British Retail Consortium (BRC) has cautioned that overall sector performance has been tempered by mild weather and more cautious consumer spending. BRC figures show modest sales growth in the run-up to Christmas and project a tough start to 2025, with consumer confidence dipping and shop price inflation forecast at 1.8 per cent.

Next will report full-year results for the 12 months ending 25 January on Thursday, 27 March.

Read more:
Next warns of 1% price increase as budget wage bill soars by £67m

0
FacebookTwitterGoogle +Pinterest
previous post
Firms slash jobs at quickest rate in four years following budget tax hikes
next post
How to Recover Data from Windows Partitions: A Step-by-Step Guide

You may also like

The opportunities of Investing in Art

May 19, 2023

Entrepreneurs petition chancellor to maintain business tax relief

October 24, 2024

The Bahamas Could Be the Ideal Destination for...

August 7, 2023

Government Borrowing in May Reaches Post-Covid Peak

June 22, 2024

Small Business Britain and Amazon combine to help...

March 9, 2023

Tips for the Year Ahead on Managing Your...

February 12, 2025

Dubai Investment Fund Continues to Explore Dubai’s Technology...

August 17, 2022

Small business debt load doubles since pandemic, hampering...

May 19, 2025

Cost of living blamed for jump in credit...

February 13, 2023

MPs told UK SMEs facing working capital squeeze

September 4, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Blue state Republicans threaten rebellion if Senate changes key provision in Trump’s ‘big, beautiful bill’

      June 5, 2025
    • Ricketts, Fetterman team up for crackdown on China’s attempts to purchase US farmland

      June 5, 2025
    • Hamas working to ‘sabotage’ Trump-backed aid group with ‘fake news’: Israeli official

      June 5, 2025
    • Longtime Trump loyalist flips on GOP’s ‘big, beautiful bill’

      June 5, 2025
    • Supreme Court rules Wisconsin unconstitutionally discriminated against Christian charity

      June 5, 2025
    • Trump touts ‘very positive’ breakthrough with Xi after slamming China for trade violation

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,529)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved