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Weather helps Next sales grow

Leicestershire-based clothing retailer Next said sales improved slightly in recent weeks after mild weather spurred demand for summer fashions and revamped stores drew in shoppers.The Enderby fashion giant said in the 26 weeks to July 26 it saw a six per cent fall in like-for-like sales, a figure which only includes stores open for a year.

However, it reported that its like-for-like sales only fell by 2.4 per cent in the past 13 weeks.

The retailer is renovating stores and adding new garment ranges to attract customers, as higher household bills and mortgage repayments sap disposable incomes. Sales were hurt a year ago as record rainfall discouraged spending on summer clothes.

Next said it is "very cautious" about the second-half outlook due to the effect on customers' finances of higher bills.

Chief executive Simon Wolfson (pictured) said: "The economic risks appear to us to be on the downside. There's no reason for any improvement in consumer spending."

Next, which runs about 480 shops in the UK and Ireland as well as the mail order Next Directory business, said total sales - which includes all stores and its mail order arm - fell 1.8 per cent in the 26 weeks to July 26.

This included a 3.1 per cent decline in total sales at its shops and a two per cent rise at Next Directory.

Many of Britain's retailers are struggling as indebted shoppers curb spending amid higher food, fuel and mortgage costs.

Source: Leicester Mercury


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