Next show how to overcome Budget concerns but 2025 could be ‘bloodbath’ for UK retail

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK retail outlet Next has posted another rise in sales ahead of expectations over the Christmas period, but warned that a price increase is on the cards for 2025 as it looks to overcome raised costs following last year’s Budget. Next said: “We believe that UK growth is likely to slow, as employer tax increases, and their potential impact on prices and employment, begin to filter through into the economy.” The company expect a rise of around £67m this year on its wage bill as a result of increases to the minimum wage and National Insurance contributions, or £73m for a full year impact. Retail giant Next has cautioned over slowing sales growth in 2025 and said it will need to hike prices due to the impact of recent Budget measures Next’s warning came as the firm reported a better-than-expected 5.7 per cent rise in underlying full-price sales for its fourth quarter so far, and upped its full-year pre-tax profit outlook once again, pencilling in a 10 per cent jump to £1.01bn. But over the new financial year to January 2026, it expects sales growth to slow to 3.5 per cent and for group profits to increase by a more muted 3.6 per cent to £1.05bn.