LONDON (Reuters) – The worst of the structural shift in Britain’s retail sector from physical stores to online is over, the boss of clothing retailer Next said on Thursday.
Next CEO Simon Wolfson said the group plans to increase its physical trading space in Britain by 0.4% in its year to January 2026 – its first increase in over five years.
The new space will consist of ten new stores and the re-site of six stores to new locations. Also two homewares stores will be converted to fashion stores.
“The fact that we’ve gone back to opening new space, albeit in a modest way, is a reflection that we think the worst of that move online is over,” Wolfson told reporters at a media briefing after Next reported annual results.
Next is still forecasting a 0.3% decline in store sales in 2025/26, more than offset by a 4.3% rise in UK online sales. Total UK sales are forecast to be up 2.3%.
Trade body, the British Retail Consortium, reported this month that the proportion of non-food items bought online increased to 36.4% in February from 35.8% in February 2024.
(Reporting by James Davey; editing by Sarah Young)
