Next expects profits to fall in 2023-2024. This forecast reflects uncertainty over whether consumers would keep spending during a recession and as the group's costs rise.

Next is a British clothing retailer. Next trades from about 500 stores and online and is often considered a gauge of how British consumers are faring. It is the first major UK apparel retailer to report on Christmas trading.

The UK consumer outlook for 2023 is poor, given inflation is running at ten per cent and consumer confidence is close to record lows. Taxes and mortgage rates are increasing, government support on household energy bills is set to be scaled back and the risk of higher unemployment in a recession is growing.Retailers are also facing cost inflation in the goods they buy as well as higher labour and energy costs. Almost half of UK consumers are negative about the country’s economic perspective and as a result plan to cut clothing spend.

Consumers are changing retail stores in a general move to increase purchases from discounters. While spending on groceries increased in the last three months, spending across almost all other categories (bar pet food and supplies and gasoline) is expected to fall. Consumers plan to spend less on footwear and clothing.