![](https://static.standard.co.uk/2022/11/04/14/10.%20ELLA_TOONE.jpg?width=1200&auto=webp)
Were Next and JD Sports operating in parallel retailing universes in the run-up to Christmas?
On the face of it is hard to reconcile the customary expectations beating Christmas trading statement from Lord Wolfson’s outfit with the wholly unexpected profit warning from the trainer and leisurewear chain.
While Next investors were rewarded with a 5% bump in the share price, JD Sports’ tumbled 18%.
Coincidentally they may well swap positions in the league table of Britain’s most profitable non-food retailers with Next upgrading their guidance to £905million this year and £960million next year, while JD slash theirs from just over the £1billion mark to between £915million and £935 million.
While Next saw strong sales growth from its loyal customers, JD says it was hit by “increased promotional activity during the peak trading season, driven by a more cautious consumer.”
Yet the two retailers share hundreds of the same high streets up and down the land. So how to solve this apparent conundrum?
The stark contrast in performance may have much to do with price points. While consumers certainly seemed in the mood to spend over Christmas, they were pretty bargain conscious too after bearing the scars of the cost of living crisis.
JD Sports appears to have simply got its forecasts wrong, not anticipating the promotional blitzes from rivals that seem to have put a hole in their numbers.
Perhaps demographics is also a factor? JD’s slightly younger more fashion conscious market place may have had less to spend than Next’s older customers more likely to be in decently paid full time jobs.
The big question now is, which of today’s announcements more accurately reflects the experience of the British high street over Christmas?
All will be revealed over the coming days and weeks. But the absence of other unscheduled updates suggests JD Sports may be the outlier