Next, a UK-based clothing and homeware retailer, has projected a period of “anaemic growth” for the country, citing various economic challenges. The company, led by Conservative peer Simon Wolfson, expressed concerns that regulatory changes, increased government spending, and higher taxes could negatively impact employment and productivity. While they do not foresee an economic “cliff edge,” Next’s half-year earnings report indicates a cautious outlook.
The report highlights several factors constraining growth, including a decline in job opportunities, regulatory burdens affecting competitiveness, unsustainable government spending commitments, and a rising tax burden. Following this news, Next’s shares experienced a 6% decline, making it the largest faller on the FTSE 100.
Despite these concerns, Next announced a £99 million dividend for shareholders, with a pre-tax profit of £509 million for the first half of the year, representing an increase of nearly 18%. Sales during this period rose by 10.3%, reaching £3.3 billion. Next has been critical of government policies such as increased national insurance contributions and proposed employment rights legislation, which is expected to ban zero-hours contracts and enhance worker protections.
While Next acknowledged the good intentions behind the pending employment bill, the company expressed apprehension about potential unintended consequences that could limit job opportunities or earnings for entry-level employees. They asserted that these employees are facing a combination of rising costs, regulatory challenges, and threats from automation.
Next operates not only its retail stores but also handles the UK distribution of several US brands and offers a variety of other products, including its own homeware and clothing lines.
Source: https://www.theguardian.com/business/2025/sep/18/next-shares-slide-as-retailer-warns-on-weak-uk-growth-and-jobs