Analysts are anticipating that high street bellwether Next is set to announce a boost in sales this week, with dwindling store sales offset by strong online growth.
UBS, the investment bank which acts as Next’s house broker is predicting a 3% lift in full price sales over the past three months, according to reports in The Sunday Times. The retailer saw a 6% rise in sales in the first quarter of 2018.
The bank Jeffries anticipates that the retailer will announce a 4% drop in store sales and 11.5% rise in catalogue and online sales, when it announces its second quarter trading update later this week on 1 August.
The retailer also claims to have secured 28% rent cuts in the renegotiation of leases. In May, it was reported that it was introducing a ‘CVA clause’ into contracts, which would entitle it to comparable rent cuts when neighbouring stores were permitted discounts as part of a Company Voluntary Arrangement (CVA).
In March, Next posted an 8.2% fall in operating profit year-on-year to £759.9m for the year to January 2018. Total group sales for the year dipped by 0.5% to £4.1bn during the period. Retail full-price sales declined by 7% compared with 2016, but online full-price sales leaped by 11.2%.