Next looks online for growth

Clothing retailer predicts difficult year for consumer spending

Next to strengthen online operations in the face of consumer slowdown

Clothing chain Next is looking to its online operation to help bolster profits in the face of slowing spending in its high street shops.

For the period six months to December, Next sales were down 0.3 per cent, whilst the Next Directory web business grew by 2.2 per cent.

And after a sluggish Christmas season, Next says it is “extremely cautious” about the 2008 forecast as higher borrowing costs take a toll on consumer incomes.

Full year pre-tax profits for the group are expected to be slightly ahead of predictions at £492m - £502m.