Lacklustre shops footfall set to hit Next’s results

0 Festive cheer is said to be low on the high street this year, and likely to hit Next’s results Fashionchainnextisexpected to cast a pall when it kicks off Christmas trading updates for the retail sector on Wednesday amid reports of straitened consumer spending.

City broker Numis forecasts a 0.5 per cent decline in total sales at the group in the two months to Christmas Eve.

Lord Wolfson, Next’s chief executive, unveiled a near-8 per cent slump in its shops in the third quarter, although its better performing directory arm recorded a 13 per cent rise.

In March, the group reported its first drop in annual profits since the financial crisis with a 3.8 per cent fall to £790 million.

Data from retail consultancy Springboard has suggested footfall in the week before Christmas fell 7 per cent yearon-year, while on Boxing Day it slid nearly 6 per cent.

Graham Spooner, investment research analyst at The Share Centre, said: “The news that footfall for the Boxing Day sales was lacklustre won’t make pleasant reading for Next and other retailers.”