Arabic version: خطط نكست لزيادة الأسعار بسبب ارتفاع التكاليف الناتجة عن النزاع

Fashion and homeware retailer Next has announced plans to raise prices by up to 8% in some countries outside Europe, citing anticipated costs stemming from the ongoing US-Israel war with Iran. According to BBC News, the company expects an additional £47 million in expenses this year due to increased fuel prices and disruptions to global supply chains caused by the conflict.

The price hikes are set to take effect in May, although Next indicated that it would not need to implement significant increases in the UK and Europe. The retailer’s forecast is based on the assumption that fuel costs will remain around their current level and that supply chain issues neither worsen nor improve.

Next had initially projected an additional £15 million in costs due to the war, a figure that only accounted for the first three months following the onset of hostilities. Following a stronger-than-expected performance, the company has raised its full-year profit forecast to £1.22 billion, up from £1.21 billion.

In the UK, Next reported a sales increase of 4.4%, exceeding previous expectations. The company aims to offset the additional £47 million in costs through a combination of price increases and cost-saving measures, while it does not foresee raising UK prices beyond its earlier estimate of 0.6% for the year.

Despite the conflict causing considerable disruption to services in the region, Next noted a recovery in trade toward the end of the quarter. The company also reported a significant recovery in international sales, although growth has not matched the strong performance seen in the first weeks of the year. Price increases outside Europe will vary by country but will not exceed 8% in any territory.