British multinational clothing, footwear and home products retailer – Next Plc’s Chief Executive Officer, Simon Wolfson, who is one of corporate Britain’s most prominent Brexit supporters, expressed his concern about the hard-line direction the process has taken and asserts that the drop in pound would lead to an ‘inflation bubble’ in 2017.
Although he doesn’t expect the situation to continue into the following year, Next Plc will raise the prices of its garments by no more than 4.5 per cent in 2017 to offset the higher cost of sourcing apparel from factories outside UK.
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The CEO further stated that the combination of rising prices and a tendency of Britons to spend more money on leisure activities suggests that UK fashion retailers should prepare for another tough year. Shares of Next Plc, Marks & Spencer Group Plc and Primark owner Associated British Foods Plc have all declined this year on lacklustre results.
“The underlying problems with the British economy have been there a long time before the Brexit vote. It’s not that we are out of the woods. We are just going into the woods,” averred the CEO.
Founded in 1864, next PLC has its presence worldwide in UK, Ireland, continental Europe, Asia and the Middle East with around 700 stores, of which 502 are in the United Kingdom and Ireland.
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