Next paints bleak outlook for fashion retailers

Richard Lim, Chief Executive, Retail Economics said: “These latest figures from Next are simply unnerving and suggest British fashion retailers are facing their toughest challenge in over a decade.

“The wettest June on record, combined with pre-Brexit jitters, have decimated sales growth across the fashion industry. It’s difficult to see the light at the end of the tunnel this year.

“On the one hand retailers are facing seismic structural changes in the way we shop and an undeterred shift towards the experience economy over some physical goods. On the other, rising costs resulting from the collapse in sterling, higher wages through the implementation of the National Living Wage and a weaker economic outlook will all bear down on profitability.”

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