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Next expects 'toughest year since 2008' despite profit rise

Retailer Next has warned that 2016 could be the "toughest" year since the financial crisis.

Next has warned that 2016 could be the 'toughest' since the recession Credit: PA

The high street giant, which is based in Enderby in Leicestershire, posted a 5% rise in underlying pre-tax profits to £821.3 million for the year to the end of January.

The group had already warned over results in January after a difficult Christmas due to unusually warm weather.

Next said it was bracing itself for a slowdown in the global economy and for profits to fall by up to 4.5% in a year that "may well be the toughest we have faced since 2008".


GMB: 30,000 Next workers to miss out on this bonus

Next clothing at the High Cross branch in Leicester Credit: PA

Reacting to the news the chief executive of Leicester-based Next is to share his bonus of £4million with 20,000 staff, giving them the equivalent of a 1.5% pay rise as a one off payment next month, Mick Rix, the GMB union's national officer for retail staff, said:

"This pay rise, while welcome, will place Next staff 18p above the national minimum wage of £6.50. This is well below a living wage of £7.65 an hour outside London and £8.80 in London, while 30,000 of the 50,000 employees will get no share of the £4 million bonus."

Next boss shares £4m bonus with 20,000 workers

Next has its headquarters in Enderby in Leicester Credit: PA

The chief executive of Leicester-based retailer Next has announced he's sharing a £4million bonus with thousands of the firm's staff.

Lord Wolfson said in a letter to employees that an incentive scheme he was awarded in 2011 had grown and was "more valuable than I could possibly have hoped".

He said that instead of accepting the bonus he had decided to share it among staff who have worked for the company since 2011 - around 20,000 employees.

The money will be shared out in proportion to a worker's annual salary, and will equate to a 1.5% pay rise, as a one-off bonus next month.

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Next profits 'expected to overtake Marks & Spencer'

The retailer Next is expected overtake High Street staple Marks & Spencer when it publishes its annual profits later today.

Next's total sales between November 1 and Christmas Eve increased 11.9% last year. Credit: PA

Next, led by chief executive Lord Wolfson, increased its forecast for annual profits in January after enjoying a bumper Christmas.

Annual profits for Next were expected to range from £684m to £700m, according to Lord Wolfson, who made the prediction during the festive trading period.

M&S will release their fourth quarter figures in the first half of next month, and are forecast to make a pre-tax profit of £626m.


Shares for Leicester-based retailer Next at record high

Next seem to be the big winners in retail after Christmas Credit: PA

Shares for Leicester-based fashion and home ware retailer Next are at an all time high after the firm announced it expects to record bumper profits for the Christmas period.

Sales across its stores leapt 7.7%, while it said revenues surged by 21% in the Next Directory catalogue and online division.

A bargain hunter laden with goods at Leicester's Highcross shopping centre on Boxing day Credit: PA

Profits at the firm are forecast to overtake high street competitor Marks & Spencer for the first time in history.

Next now has a stock market value of more than £9 billion after seeing shares rise by nearly 50% in the last year, compared with £7.2 billion for its 130-year-old rival M&S.

Sales up 3.9% for Next

The growth has come from the Next Directory sector of the business Credit: PA

Retailing giant Next have seen a large growth in the Next Directory sector of their business pushing their growth across the year ending in January to 3.9%.

Although this is largely in line with expectations cost control has seen the company increase its profit estimates to £618 million.

Despite the progress, Simon Wolfson, Chief Executive, warned trading conditions were likely to remain difficult this year as wage growth continues to lag behind inflation.

Next Retail's headquarters are in Enderby in Leicester.