Retail giant Next posts falling profits after ‘most challenging year’ in 25 years

Next has become the latest retail outlet to record a negative performance admitting that "2017 was the most challenging year we have faced for 25 years."

The company reported an 8.1% fall in annual pre-tax profits to £726.1 million, while total sales dropped 0.5% to £4.1 billion.

Revenue at its shops slumped while online revenues grew by nearly 10% which helped soften the blow.

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Chief executive Lord Simon Wolfson said its poor performance was due to "a difficult clothing market coincided with self-inflicted product ranging errors and omissions.

"At the same time, the business has had to manage the costs, systems requirements and opportunities of an accelerating structural shift in spending from retail stores to online."

The figures come at a time of growing concern for retail stalwarts.

As well as the administrations of Toys R Us and Maplin; Debenhams, Mothercare and Carpetright have all issued profit warnings this year.

• Toys R Us to close all of its stores within six weeks

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