"Simon Wolfson, the company's chief executive, said that Next is working under the assumption that the war will last for three months. However, he warned that if the conflict extends beyond that timeframe, 'we will begin to pass costs through as higher pricing.'"
"Lord Wolfson said: 'We have accounted for £15 million of additional costs that are likely to arise from the conflict, such as fuel and air freight, on the assumption that the disruption lasts for three months.'"
"This situation highlights growing concerns among major UK retailers that geopolitical tensions may soon lead to higher consumer prices, putting further pressure on household budgets."
Next plc reported a £15 million loss attributed to rising costs from the Middle East conflict, including higher fuel and air freight expenses. The company currently offsets these costs through savings but warns that prolonged conflict could necessitate price increases. The Middle East accounts for 6% of annual sales, and slower growth in the region may impact overall costs and consumer demand. Next's CEO anticipates the conflict lasting three months, after which higher pricing may be implemented if costs persist.
Read at London Business News | Londonlovesbusiness.com
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