Online retail to be Next’s summertime saviour as hot weather boosts sales
Fast fashion stalwart Next is preparing to reveal its half year results to investors on Tuesday, with many eager to see whether its online sales uptick continued throughout the UK’s extended hot summer.
The retailer had previously warned earlier this year that it was facing its toughest trading conditions in 25 years as customers turned to budget brands such as Primark and online-only favourites, including the London-listed Boohoo which will release its results on Wednesday.
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In a trading update for its second quarter at the beginning of August, Next said the recent hot weather had boosted demand for its summer ranges across clothing and lifestyle despite missing overall sales expectations.
Full price sales via its online business were up 15.5 per cent, while physical retail dropped 5.3 per cent.
CMC Markets’ Michael Hewson said: “The big question is whether the extended warm weather spell has helped it maintain the pace set in the first quarter, or whether turnover has slowed down ahead of autumn”.
The news comes as embattled retailer House of Fraser, which was bought by Sports Direct owner Mike Ashley for £90m after briefly falling into administration, is set to close a further three stores.
Read more: Mike Ashley blames landlords for House of Fraser closures
Separately, 15 stores previously destined for closure will stay open. A fourth store remains at risk.