Stores warn of trouble looming at Christmas

FASHION giant Next has warned of price hikes and has said staff shortages could impact its deliveries in the run-up to Christmas.

Next said some areas of the business were starting to come under pressure from a lack of foreign workers, particularly in logistics and warehousing, which may affect its delivery service going into the peak festive season.

Chief executive Lord Simon Wolfson – a prominent Brexit supporter – called on the Government to ease immigration rules and take a “decisive approach to the looming skills crisis”.

“We anticipate that, without some relaxation of immigration rules, we are likely to experience some degradation in our service in the run-up to Christmas,” the group said.

Lord Wolfson told the Press Association that the group may have to bring forward the nextday delivery cut-off from 11pm, but stressed deliveries “won’t grind to a halt”.

The retail group also cautioned over price hikes amid the supply chain woes, with higher freight costs pushing up prices by about 2% in the first half and further increases set to come.

Next sees prices rising by around 2.5% on average in the first half of 2022, with fashion price tags expected to lift by 1% and homewares by 6% as bigger products take the brunt of the higher freight costs.

Lord Wolfson said the recent move to introduce temporary visas for European Union lorry drivers was “late but welcome” and made a plea for the Government not to wait until shortages of skills in other areas becomes a crisis.

Next stated: “We hope that the Government will take a more decisive approach to the looming skills crisis in warehouses, restaurants, hotels, care homes and many seasonal industries.”