New figures show that high street fashion chain Next has seen a drop in its online sales as shoppers instead went back to its shops post-Covid.
The Leicestershire-headquartered retail giant said sales continued to grow following two-years of on-and-off lockdowns.
In the first three months of 2022 full price sales were up a fifth compared to the start of 2021, but online sales were down 11 per cent.
And although in-store sales were up markedly on a year earlier they were down 8 per cent on the start of 2019 – the last comparable period before Covid hit.
Shares in the business were trading level at £60.81 this morning, compared to a recent high of £82.60 this time last year.
Bosses said the high street bellwether remains in good shape for the rest of the year and did not downgrade forecasts as a result of further inflationary pressures.
Chief executive Lord Simon Wolfson said in March that the company is expecting to increase prices by an average of 3.7 per cent over the half-year to July.
He said pricing is expected to rise by an average of 8 per cent in the following six-month period, with fashion set for a 6.5 per cent increase.
But on Thursday there were no further suggestions that prices would rise any higher.
The company previously said it would take an £85 million hit in sales by shutting its operations in Russia and Ukraine, knocking profits by £18 million for the year.
Only yesterday Joules – another Leicestershire-based fashion retailer – announced that chief executive Nick Jones was stepping down from the top job as it announced a shake-up of its operations.
The announcement was made with a trading update saying Joules sales were up almost a third over the last three months although the rising cost of living was making market conditions more challenging.
Management said performance had fallen below expectations in some parts of the business.
Russ Mould, investment director at stockbroker AJ Bell, said: “The market has been fearful that consumer-facing companies would experience a sharp decline in trading, and indeed we’ve seen several businesses already report this trend.
“In Next’s case, sales have weakened versus a year ago, but if you compare the figures to pre-pandemic they are still considerably ahead.
“Once the latest energy bills hit the doormat, households are going to have a shock when they try and work out how much money is left after paying for food, drink, utilities, council tax and other monthly outgoings.
"There remains a big risk that non-essential retailers will be left out in the cold because households’ money no longer goes as far.
“Unless you need smart clothes for a job interview or need to replenish socks and underwear, there is a strong argument to make existing threads last longer when money is tight.
"Next may have one of the best management teams in the retail sector, but there is only so much they can do in the current situation.”
