Next ups prices to offset £67m increase in wage costs
The retailer intends to increase prices by 1% on like-for-like goods to combat a rising wage bill, alongside a projected £7m marketing “cost increase”.
Next is set to raise prices and explore “operational efficiencies” as it looks to offset the impact of rising wage costs.
The fashion and home retailer plans to address the “unusually high” £67m expected rise in wages by implementing a 1% price increase on like-for-like goods – items that have not changed from one year to the next – alongside operational efficiencies in its warehouses and stores, and other cost-saving measures.
By raising prices, Next aims to cover approximately £13m of the additional wage costs. While acknowledging these price increases are “unwelcome”, the company explains they remain “lower” than the UK’s general inflation rate.
Next has seen consumers shift their purchasing preferences, buying fewer entry-level
products and more items at the middle and top end of its price architecture.
