NEXT has made a big change to its prices and shoppers will be able to breathe a sigh of relief.
The retail giant had previously said it would be raising prices up by eight per cent in the spring and summer this year.
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It had then planned to increase costs by an extra 6% in autumn and winter.
At the time, it said demand has been impacted by the cost of living and energy crisis, rising mortgage costs and its own price hikes.
But luckily for shoppers, Next has made a U-turn and will instead raise prices a lot slower than expected thanks to better-than-expected profits.
While prices are still increasing, the fashion retailer predicts hikes of just 7% over spring and summer and then a smaller 3% in the autumn and winter.
It reported a 5.7% rise in pre-tax profits to £870.4million for the year to January – it had expected a £860million profit.
Prices have been rising over the last year anyway, with costs going up by 6% in March 2022.
Many households and businesses have been battling soaring inflation, with is impacting prices in shops.
The UK’s current rate of inflation rose to 10.4% in February, according to the latest figures from the Office for National Statistics (ONS).
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Inflation is a measure of how much the prices of goods and services have changed over time.
When it goes up, prices on everyday items and essentials from groceries to fuel to transport costs increase – which means you’ll pay more just to get by.
The news comes just after Next snapped up Cath Kidston, which is known for its kitsch floral designs.
Next told shareholders it will buy the brand name, domain names and intellectual property for the business for £8.5 million.
Next has been known to save failing companies from administration.
In November last year, it bought furniture store Made.com.
Made, which employed around 600 people, sold its brand, website and intellectual property to the clothing and homewares retailer.
Next started selling Gap clothing online in late 2021, after it took over the running of the high street brand.
It started selling Gap clothing in stores in early 2022.
It also agreed a sale to buy struggling lingerie brand Victoria’s Secret in a move that saved its UK shops and website.
And earlier this year, it took a stake in baby and maternity clothing retailer JoJo Maman Bebe.
How can I save money at the shops?
Keep an eye out for any sales, but make sure you only buy things you already planned to buy – otherwise you’re not really making a saving.
For Next, the store has outlets across the UK that sell discounted items.
It recently announced it would open two new outlet stores in England and Wales in April.
With the additional Next Outlets opening in Gloucester and Swansea in April, the brand will operate a total of 48 outlet stores.
Some retailers have secret sections on their online stores where you can find big discounts.
Amazon Warehouse sells returned goods at discounted prices.
Before you buy something online, check your emails or voucher websites to see if there are any valid money off codes that could help you get a cheaper price.
Buying second-hand is also a tried and tested way to get clothes, toys, books and homeware for less.
If you’re worried about the impact of inflation on your supermarket shopping, you could switch to a cheaper grocery store.
Aldi and Lidl are often cheaper than other supermarkets.
You should also make sure you’re making the most of any loyalty card schemes available.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
