Leicestershire based high street giant Next warns over Brexit costs impacting a fall in sales

Leicestershire-based high street giant Next has warned over soaring costs from Brexit as it posted another fall in sales.

The group said its buying costs could rise by up to 5% in the year to the end of January 2018 after the value of the pound has been sent plunging since the vote to leave the EU.

Sales were down 3.3% for its retail shops in the second quarter to the end of July. Although the Next Directory saw a 5.7% rise.

The high street chain said there was "no clear evidence" of a hit to consumer confidence since the Brexit vote, despite a warning that trading conditions will remain tough for the rest of the year.

Next said it had been able to protect itself against falls in the value of the pound for the current year to January 2017.

It is hoping to offset much of this, partly by switching some of its product buying to new areas such as Bangladesh, Cambodia and Burma.