UK Retailer Next Dials Down Inflation Estimates

Next Plc expects to raise prices less than it previously feared this year, describing inflationary pressures as more benign than previously thought.

(Bloomberg) — Next Plc expects to raise prices less than it previously feared this year, describing inflationary pressures as more benign than previously thought.

The fashion and homeware retailer will probably increase prices by 7% in the spring-summer season and 3% for fall and winter items, it said in a statement Wednesday.

Next is considered a bellwether for the British retail sector, with hundreds of stores across the country and a successful website. The retailer has emerged as one of the beneficiaries of the cost-of-living crisis that has seen smaller rivals collapse.

Next agreed to buy the Cath Kidston label out of insolvency on Tuesday, the latest in a string of brands that it’s adding to its offering. The retailer already bought fashion chain Joules and furniture brand Made.com late last year.

The inflation forecast is down from estimates of 8% and 6% respectively. Next reiterated that it expects sales and profit to fall this year.

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