Next set to reveal sales dip as ‘squeezed middle’ cut Christmas spending

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. The cautious approach means that there could be no big surprises for investors in Thursday’s post-Christmas update, although the past few weeks will be a “crucial pillar” of current consumer spending habits, analysts said. The anticipated drop in the festive period reflects not just the pressure on consumers’ incomes – and Next’s customers may be classic examples of the squeezed middle – but also the tough base for comparison as last year benefited from an easing in the pandemic, an end to lockdowns and pent-up demand Russ Mould and Danni Hewson, AJ Bell But it expects pre-tax profits to reach £840 million, up 2.1% compared with the £822 million reported the previous year. Russ Mould and Danni Hewson, analysts at AJ Bell, said: “Next is traditionally the last major retailer to go live with its end-of-the-year sales but the markdowns went live on Christmas Eve this year, to suggest that the FTSE 100-listed firm has not proved immune to the challenges posed by inflation, unco-operative weather and the squeeze put on consumers’ pockets by the cost-of-living crisis. “The anticipated drop in the festive period reflects not just the pressure on consumers’ incomes – and Next’s customers may be classic examples of the squeezed middle – but also the tough base for comparison as last year benefited from an easing in the pandemic, an end to lockdowns and pent-up demand.” Amid a tougher economic climate, investors will also be keen to see whether Next has noted an increase in shoppers using credit options to fund their purchases.