Next plans Brexit price hikes

Currency movements are pushing up costs for British retailers...

Next plans Brexit price hikes

Steve Parsons / PA

British fashion retailer Next has warned that the results of the Brexit vote will make its clothes more expensive.

The retailer's pretax profits fell by 1.5% to £342m during the first half of 2016.

A statement from the company said that currency swings provoked by the referendum result will mean that its clothes will increase in price by less than 5%.

"In the scheme of things, we think that this drag on sales is manageable and less damaging than taking a significant hit to margin," Next said in its report.

Fast fashion retailer Primark also raised the issue of currency movements affecting their costs - but the company pledged that it will not increase prices as a result.

Banking on Christmas

The owner of John Lewis and Waitrose has reported a 75% fall in half-year profits in the UK, down to £56.9m.

John Lewis faces tough competition in the clothing market and is also dealing with a major shift to online sales.

Like-for-like sales at John Lewis increased by 3.1% during the half year. It will hope for a sales bump in the remainder of the calendar year as it gears up for a fresh (blockbuster TV-spot fueled) assault on the Christmas market.

The second half of the year traditionally accounts for close to two-thirds of its turnover.

Additional reporting by IRN