Next says Middle East conflict could raise clothing prices by up to 10%
The boss of Next has said clothing prices could rise by 4% to 10% if conflict in the Middle East extends into the autumn and factories are hit by higher fuel and fabric costs.Simon Wolfson said the clothing and home retailer had so far seen little disruption to its supply chain.While container ships are being delayed by up to two weeks as they travel slowly to save fuel, he said the company already held enough spare stock to prevent gaps on shelves.He said these costs could amount to £15m if the conflict lasts three months and prices could begin to rise by about 1% from June or July if disruption dragged on until then.Lord Wolfson added that Next was offsetting additional costs on fuel and air freight with savings elsewhere and it did not expect any effect on profits for the year ahead.
He said if the conflict continued into autumn, there would be “a more significant increase in prices” to pass on – of between 4% and 10% – and his main concern was about the price and availability of fuel for factories.He said the increase was “unlikely to be as much as” 10%, given that retailers and suppliers would make savings to mitigate the impact.The boss of rival fashion retailer H&M also said a prolonged conflict could have a significant impact on consumer spending.Daniel Ervér, the chief executive of the Swedish chain, told Reuters: “A continued conflict, such as with continued high energy prices, will create inflationary pressure on a consumer who already has tough inflationary pressure.”Despite Wolfson’s warning on the effects of the conflict, Next upped its profit guidance by £8m to £1.
2bn for the year to January 2027 after better than expected sales in January this year,It said the guidance was being increased despite its expectation that sales in the Middle East, which account for 6% of group turnover, could be adversely affected until the summer,Wolfson said he had not spotted signs of a turn for the worse in consumer sentiment,“If energy bills and the [higher costs] feed through to [retail] prices, that is when they will respond,” he said,That came after pre-tax profits rose 14.
5% to £1.16bn in the year to January as sales increased by almost 11% to £7bn.In its annual trading update, Next said of the Middle East conflict: “We have no feel for the medium-term effects on supply chain resilience, freight rates, factory gate prices and consumer demand.“Much will depend on how long the conflict persists, and how much permanent damage is done to the world’s energy infrastructure.”Next said it had increased the amount of stock it held by 6% to give protection in the event of supply chain delays, although that was partly linked to the development of its warehouses.
Sales at the group were boosted by strong sales overseas, particularly via third-party websites such as Zalando, and from its newly acquired brands such as Cath Kidston.However, the group also increased sales in stores and online in the UK.Next said it was focused on cutting costs, with more use of AI in its warehouse operations part of the plan for the year ahead.It said it was already using AI technology to help in sales forecasting, as well as getting the right discounts and range of sizes in stores and online.In a lengthy report, the company said: “At Next it appears to us that AI will change people’s jobs rather than replace them, making them much more effective, and taking away many of the tasks they enjoy least.
People will need to adapt and change, but Next people are generally good at that.”It said the jobs most affected were “routine processing jobs”.Next added: “If we are reflective of the wider economy, then those in jobs need not worry too much; the challenge will be for those looking to join the workforce.”The retailer was the biggest riser on the FTSE 100 on Thursday, with its shares up nearly 5%.
Oil shrugs off Trump’s latest Iran extension; UK consumers feel ‘ripple of fear’ from the conflict – business live
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Is the market losing its appetite for TACOs?Oil traders are shrugging off Donald Trump’s latest pause on striking Iran’s energy infrastructure, and are keeping crude prices at elevated levels today.Last night, Trump extended his deadline for Iran to open the strait of Hormuz by 10 days to 6 April, claiming talks are “going very well”. But with Iran denying it is “begging to make a deal”, as the US president claims, the delay isn’t bringing much cheer to energy markets.Brent crude oil did drop after Trump made his comments, but it has now risen back to $108
US markets see biggest slump since start of US-Israel war on Iran
US markets saw their biggest slump since the start of the US-Israel war with Iran on Thursday as Donald Trump said the conflict’s impact on oil prices had not been as bad as he expected.The Dow closed 450 points down, while the S&P 500 dipped 1.7%. The tech-heavy Nasdaq fell 2.3%, plunging into correction territory, which happens when an index falls at least 10% below its most recent peak
‘Accountability has arrived’: dual US court losses show shifting tide against Meta and co
In the span of just two days, the most powerful social media company in the world faced a more severe public reckoning than it has in years.Jurors in California and New Mexico gave back-to-back verdicts this week that for the first time ever found Meta liable for products that inflict harm on young people. For years, lawmakers, parents and advocates have raised red flags over how social media can hurt children, but now the tech firms are being held to account via court rulings that could set long-lasting precedents.A jury in New Mexico ordered Meta to pay $375m in damages on Tuesday over claims that its products led to child sexual exploitation, among other harms. The following day, a jury in California ordered Meta and YouTube to pay $6m over claims that both companies deliberately designed addictive products to hook young users
New York City hospitals drop Palantir as controversial AI firm expands in UK
New York City’s public hospital system announced that it would not be renewing its contract with Palantir as controversy mounts in the UK over the data analytics and AI firm’s government contract.The president of the US’ largest municipal public healthcare system, Dr Mitchell Katz, testified last week before the New York city council that the agreement with Palantir would expire in October.He said at the hearing that the contract, which focused on recovering money for insurance claims, was always meant to be short-term, and that there was an “absolute firewall” preventing Palantir from sharing information with US Immigration and Customs Enforcement. He said that the agency has “not had any incidents”.The contract and related payment documents shared with the Guardian by the American Friends Service Committee and first reported by the Intercept, show that NYC Health + Hospitals has paid Palantir nearly $4m since November 2023
Chess: iconic Reykjavik Open sparks memory of Bobby Fischer from 1973
The nine-round Reykjavik Open, which began on Wednesday afternoon at the Harpa Conference Centre and which continued with two rounds on Thursday, is an iconic event. It was first played as an all-play-all in 1964, when Mikhail Tal won, and is close to the Hotel Reykjavik Natura, formerly the Hotel Loftleidir, which featured prominently in the epic Bobby Fischer v Boris Spassky match of 1972.The top seed in the capacity entry of 422 players is Iran’s Amin Tabatabaei, the only 2700-rated player in the field, with Romania’s Bogdan-Daniel Deac (2655) next, and the veteran Ukrainian Vasyl Ivanchuk (2624) the fourth seed.England has a large contingent of more than 20, although most of them are low-rated amateurs. GM Matthew Wadsworth (2522) is the 21st seed, and GM Simon Williams (2443) the 39th, while WIM Bodhana Sivanandan, 11, is targeting her second WGM norm
Aryna Sabalenka sinks Rybakina to set up Miami Open final showdown with Gauff
Aryna Sabalenka believes she is ready for the challenge of facing her rival Coco Gauff in the Miami Open final as she stands one win away from winning Indian Wells and Miami in the same year for the first time in her career.“She’s a fighter,” Sabalenka said of Gauff. “She’s a great player, of course. We played a lot of matches, a lot of tight matches, a lot of big finals. And, yeah, she’s a great player and I’m really excited to face her in the final
Four knockout bakes and tips from the master: Edd Kimber’s recipes for cooking with chocolate
Sauces, spreads, sprinkles – and cocktail in a can: whose fridge is this?
Rachel Roddy’s recipe for potato, aubergine and herb tortino alla fiorentina
How to turn old sourdough into a classic pudding – recipe | Waste not
Fresh start: Hetty Lui McKinnon’s recipes to celebrate spring
Kurdish kitchens, baked bean alaska and Mexican soul: the best spring cookbooks for 2026 – review