Online sales power Next performance – but supply chain issues on horizon

Leicestershire retail giant Next has published another set of impressive results, with turnover rising by 17% for the 13 weeks to October 30.

Next has measured itself against results from two years ago as most of its shops were shut for large parts of last year, due to national lockdowns.

Online sales were particularly bouyant, rising by 40% during Q3. However, the Next says it expects sales during its fourth quarter – over the important Christmas period – to be hampered by supply chain issues.

Richard Lim, CEO, Retail Economics said: “The strength of its digital capabilities and online platform has underpinned another set of hugely impressive results. The business continues to be driven forward by a best-in-class online proposition, with its partnership with third-party brands driving an ever-widening customer base. The international business also saw strong gains as global economies continued to recover and demand rebounded.

“However, the outlook for Christmas remains more uncertain with disruptions to supply chains and labour shortages likely to cause challenges. The consumer backdrop has also softened significantly as inflationary concerns collide with rising concerns about the strength of the economy.”