Fashion giant Next warned about price increases, saying staff shortages could affect deliveries for Christmas.
He added that some areas of the business are beginning to be under pressure from a shortage of foreign workers, especially in logistics and warehousing, which could impact delivery services during the peak holiday season. rice field.
“Without the relaxation of immigration rules, we anticipate that services will likely decline somewhat towards Christmas,” the group said.
Sir Wolfson said the group might need to accelerate the next day’s delivery deadline from 11:00 pm, but emphasized that delivery “will never stop.”
The group also warned about price increases as fares rose by about 2% in the first half of the year as supply chain problems continued.
Next expects prices to rise by an average of about 2.5% in the first half of 2022, with fashion price tags rising 1% and household items rising 6% as larger products bear the brunt of higher fares. Expected.
Sir Wolfson said the recent move to introduce temporary visas to EU truck drivers was “welcome at the latest” and pleaded with the government not to wait until a lack of skills in other areas was at stake. Stated.
Next, he states: “The HGV crisis was foreseen and widely predicted for months.
“For the wider UK economy, we want the government to take a more decisive approach to the impending skill crisis in warehouses, restaurants, hotels, long-term care facilities, and many seasonal industries.
“A demand-driven approach to ensuring that the country has the skills it needs is now essential.”
Sir Wolfson added: “I hope the government will look further into the future and not wait until the crisis hits.”
The comment came as the group raised its fourth full-year sales and profit forecast for the current fiscal year after a surge in summer sales, with stocks up 3%.
Profit before tax for the six months to 31 July was £ 346.7m, down 16.5% year-on-year, but up 5.9% at 2019 levels.
Full-price brand sales were up 62% year-over-year, up 8.8% year-on-year.
Next, regular price sales in June and July rose 20% above expectations to 2019 levels, but they also got off to a good start in the second half of the year.
The group now has annual sales up 10% at 2019 levels, pre-tax profits reach £ 800 million in the year to January and up 6.9% in 2019, the previous guidance of 766,400. Expected to exceed £ 10,000.
However, he warned that higher costs, supply problems, and potential impacts on delivery services due to staff shortages could hinder performance.
“Living costs could ease demand in the coming months, along with the potential impact of seasonal labor shortages on delivery services,” he said.
Sophie Lund-Yates, Equity Analyst Hargreaves Slan’s Down “The challenge is to manage confusion and price increases as much as possible to limit unnecessary and avoidable customer backlash.”
Then warn about price increases and a shortage of Christmas staff
Source link Then warn about price increases and a shortage of Christmas staff