Business

Then return a £ 29m business rate reduction as sales surge

Then, after being blocked beyond pre-pandemic levels, sales surged, returning £ 29m in business rate cuts.


The next step is to return the £ 29m business rate bailout after the relaxation of the blockade restrictions has led to a surge in sales.

High Street fashion stores have revealed that the deal has been “unexpectedly strong” since May as shoppers scattered in the summer wardrobe.

This helped boost sales beyond pre-pandemic levels, and Next is now raising its third profit forecast this year.

Sales boom: Next, shoppers reported “unexpectedly strong” deals since May as they splattered into the new summer wardrobe.

The company’s share price, led by Simon Wolfson, rose 7.5% (552p) to 7946p.

Following the bumper’s performance, NEXT revealed plans to return the reductions in business fees received while the store was open.

A spokeswoman for the company said, “Sales in the last 11 weeks have been significantly higher than expected, and as a result, we are raising our full-year profit forecast.”

During the pandemic, many retailers have seen sales in their physical stores hit by blockage restrictions that forced them to remain closed for extended periods of time.

Successful online operations, including Next, have been able to grow sales over the Internet, but closing physical stores has proven to be costly.

Under the government’s roadmap to lift the blockage restrictions, “non-essential” stores, such as clothing stores, were allowed to reopen in April.

And, according to Next, customers have been repelling cash since then, with sales up 20.8% in the 11 weeks to 17 July compared to the same period in 2019.

This includes a 44% increase in online sales and a 6% decrease in physical stores, Next said.

According to the company, “stagnation of demand” from customers with relatively few summer purchases in the last 18 months contributed to “very strong” performance as well as the heat of May and June. is.

He said he didn’t expect this level of trading to continue, but he was more optimistic and said sales in the second half were expected to be stronger than previously forecast.

As a result, the company raised its full-year profit forecast by £ 30m to £ 750m.

This will generate £ 240m of “surplus cash” and Next said it will hand it over to shareholders through a special dividend. The first dividend will be paid in September.

Strong results were reflected in a survey by accountant BDO, who reported that many retailers were “euphoric” and reopened in April.

Sophie Michael, head of BDO’s retail and wholesale division, said it has shown a “change in consumer sentiment.”

She said recent deregulation is expected to unleash a “further wave of spending.”

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Then return a £ 29m business rate reduction as sales surge

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