UK consumer outlook most positive than since before pandemic, Next boss says
Reuters
Published Mar 21, 2024 09:31
By James Davey
LONDON (Reuters) - The outlook for the UK consumer is the best it has been than since before the pandemic in 2020, the boss of clothing retailer Next said on Thursday.
"We're not negative about the consumer outlook, it's a first for us for some time," Next chief executive Simon Wolfson told Reuters after the group reported annual results.
"That doesn't mean we think the consumer environment's going to be hugely ebullient, we just don't think that the consumer's facing the same headwinds they were facing at this time last year."
The company, often considered a gauge of how British consumers are faring, forecast a 4.6% rise in profit in its 2024-25 year on full price sales up 2.5%.
Wolfson, a peer of Britain's ruling Conservative Party and the longest-serving FTSE 100 CEO, said the risk factor for 2024 he was most concerned about was the prospect of a weakening employment market.
"If employment numbers start coming down significantly that will impact peoples' disposable income," he said in an interview.
Wolfson said he was also keeping a close eye on measures of bad debt.
He welcomed the recent increase in UK consumers' real wages but cautioned that "from a policy perspective the country just needs to be very careful."
"If wages rise too much ahead of inflation, then either it becomes inflationary itself or it leads to unemployment and it's a fine balance," he said.
"At the moment it looks like that balance is broadly right but it's just something to watch."
Wage rises are closely observed by the Bank Of England as it assesses whether the inflationary pressure in the British economy has eased enough for it to cut the interest rate from its highest level in 16 years.
($1 = 0.7820 pounds)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.