Next has said it still expects its full-year profits to be in line with market expectations, despite continued difficult trading.

In the 14 weeks to November 1, the retailer’s total sales across its retail and directory businesses were up 0.9 per cent.

Like-for-like sales across its stores were down 4.4 per cent.

Next retail sales were up 0.3 per cent on last year with directory sales up 2.1 per cent.

In a statement, Next said: “The outlook for consumer demand in 2009 is mixed. On the up-side, lower interest rates and falling fuel and food bills are likely to increase the amount available for discretionary spending at some point during the year.”

But the retailer also said rising unemployment rates and falling house prices could encourage people to save more.

Next also believes that the current strength of the US dollar against the pound will have a greater impact on its prices in the autumn-winter 2009 season.

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