UK clothes retailer Next has posted a 6% fall in first-half underlying sales, in line with forecasts, and said it expected a similar decline in the second half amid a worsening economy.
'We remain very cautious about the outlook for the second half and can see no reason for any improvement in consumer spending,' it said in a trading statement.
Next, which runs about 480 shops in the UK and Ireland as well as the mail order Next Directory business, said total sales fell 1.8% in the 26 weeks to July 26. This included a 3.1% decline in total sales at its shops and a 2% rise at Next Directory. Underlying sales strip out the effects of new store openings.
Many of Britain's retailers are struggling as indebted shoppers curb spending amid higher food, fuel and mortgage costs. The Confederation of British Industry on Tuesday reported a record fall in annual sales for July.
