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

NEETs near one million as jobless young women...

August 21, 2025

City chiefs urge Hunt to tackle domestic investment...

November 15, 2023

Bank of England’s top economist offers two routes...

September 1, 2023

Gin and tonic surpasses tea as Britain’s favourite...

November 19, 2024

Unspent Big Tech Training Funds to Be Used...

March 18, 2024

AI and Machine Learning: Revolutionizing Mobile Development and...

March 10, 2023

Can Gambling Regulators Combat Crypto Payments Entering The...

March 26, 2025

Chancellor’s Spring Budget Sparks Potential Surge in Pension...

March 12, 2024

Energy Sources In the UK: A Growing Marketplace

June 8, 2023

Warehouse Solutions for High-Density Storage in Grocery Logistics

February 17, 2025

    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

    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025
    • Bankruptcy, Hell, and Exit Barriers

      August 27, 2025
    • Trump’s DC Death Penalty Crusade Threatens More Tyranny of the Minority

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,501)
    • Stocks (3,228)
    • 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