Next forecasts drop in spring sales amid cost of living crisis and cold weather

Chain's CEO Simon Wolfson warns of very challenging' 2023 after signalling price rises of 7%

The UK clothing and homeware retailer Next has reported a smaller than expected drop in sales in recent weeks but expects a bigger decline in the spring quarter because of the cost of living crisis and colder weather than last year.

Next, which has about 500 stores and is seen as a good barometer of consumer spending, said sales were down by 0.7% from a year earlier in the 13 weeks to 29 April, better than the firm's guidance of a 2% fall.