Next has stated it may be forced to close some stores if it loses an appeal in a significant equal pay case. This comes after a recent legal victory for its shop workers, who fought for six years to receive equal pay.
The company could face a compensation payout of over £30 million if the appeal fails.
An employment tribunal determined that Next’s retail staff, predominantly women, should be paid the same as the warehouse workers, who are mostly men. Next warned that the ruling could render some stores financially unviable if upheld.
CEO Simon Wolfson clarified that the statement was not a threat but a realistic view of how rising business costs could impact store operations.
Global fashion trends boost Next’s international sales by 23%, offsetting UK retail challenges.He also noted that despite a recent sales boost, there is no clear sign of increased consumer spending, with sales largely driven by good weather.
Next currently operates 466 stores across the UK. The company is anticipating an increase in annual profits, now forecasting £995 million, driven by strong overseas sales, particularly with a 23% rise in the six months leading to July.
This growth in international sales has been fueled by the global convergence of fashion trends, largely due to tech platforms like Netflix, YouTube, and TikTok.
Next is also expanding internationally, with partnerships in India and the U.S., and plans to strengthen its shipment networks in the Middle East and Europe.
The company aims to hit £1 billion in profits for the first time, a milestone reached by a few UK retailers.