Green warns worst trading is yet to come

Speaking at a Topshop fashion show in New York yesterday, Green said the “very tough” market conditions could worsen, as consumers face the fallout from the credit crunch.

“People have started to realise this is going to be a long slog. We still haven’t seen a major profit warning,” Green told The Times.

The comments coincide with a turbulent week on the market for retailers and one where City analysts slashed their profits and price targets.

Seymour Pierce said the outlook on the high street was bleak without a cut in interest rates and Citi said trade would get worse during this year and next year.

Green said Topshop and Topman were continuing to trade well, but that the middle market – which includes his Bhs chain alongside the likes of M&S, Next and Debenhams – was “very, very tough”. He said: “It’s going to find a level, but there is a lot of pressure.”

Green added that there are no plans to halt the expansion of Topshop in the US, where it will launch its first store in October on Broadway.

“At the end of the day, are people going to stop shopping for clothes? No, they are not,” he said. “It’s all about being great and giving people a reason to shop. Keep it new, fresh – it’s all the things we are good at.”