Dip in first quarter sales at Next

High Street fashion retailer Next has announced a sharp fall in sales in the first 3 months of the year, as widely expected.

The group said rises in the cost of food, fuel, utility bills and mortgage repayments were all taking their toll on the High Street shoppers.

Back in March, the company’s chief executive predicted that his customers would be affected by the current economic downturn because most of them had a car, a mortgage and a family - all of which were costing significantly more.

The group is cautious about the outlook for this summer due to the current economic climate, however, it is hoping the warm weather will help to lift the gloom. It added that it was confident that sales in the second quarter would improve considerably.

Combined sales for stores and the Next Directory internet business fell by 3.9% in the first quarter. Like-for-like store sales across the 340 stores that were unaffected by new openings, fell by nearly 9%.

The retailer is to open 385,000 square feet of new space during this year, via a mixture of store extensions, refits and openings.