Next chief executive Simon Wolfson is expecting a “nerve-wracking” Christmas for retailers.
As Christmas Day falls on a Thursday this year he says consumers will leave it even later than last year to buy gifts.
The retailer said this week that despite a drop in like-for-like retail sales of 4.4 per cent in the 14 weeks to November 1, it was confident of hitting market expectations on full-year profits.
Next said that it believed falling food and fuel bills would start to increase consumers’ discretionary spend.
Wolfson added: “Next year pressures on consumers will ease, which is why I am not so bleak on it. We should not talk ourselves into more of a black year next year.”
However, Next remains cautious, adding that rising unemployment and falling house prices may encourage consumers to save rather than spend.
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