Next’s (NXT) sales decline has been sharper than envisaged in a stress test issued in March, with the retailer now modelling for a sales decline of 30 to 40 per cent. Next now expects sales to drop over both halves of the year.
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The retailer’s forecasts predict a cash outflow ranging from £280m to £505m. In response, Next is taking measures, including the sale and leaseback of some warehouses and deferring capital expenditure, to raise an additional £807m in cash. Next has also slashed its stock by £960m and moved a further £330m of its spring/summer stock into next year.
