Retail giant Next has revealed rising freight and fuel costs linked to the Middle East conflict could push up prices for shoppers if disruption continues to hit supply chains
High-street giant Next has warned the Iran conflict has already cost it £15 million – and says shoppers could face higher prices if the war drags on.
The group said it had set aside the cash for additional costs for fuel and air freight due to shipping disruption and soaring oil prices, but that the impact so far can be offset by savings elsewhere in the business.
A prolonged war in the Middle East – a region which accounts for around 6% of its annual sales – is likely to impact costs, selling prices and consumer demand across the wider group, the retailer warned.
Chief executive Lord Simon Wolfson said Next was currently working on the basis that the war lasts for three months, but stressed if the conflict drags on, “we will begin to pass costs through as higher pricing”.
“But for today that remains a contingency, not a plan,” he added.
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