Fashion retailer, Next has reported its first annual profit fall since the financial crisis of 2008.
Pre-tax profits dipped 5.5 per cent from £836.1m to £790.2m last year.
The firm said shoppers are changing the way they are spending, this isn’t helped by rising inflation and the squeeze on incomes.
As well as this sales at Next’s bricks-and-mortar business fell three per cent to £2.3bn. This is due to the fact that shoppers are moving away from the high street.
The firm’s sales in its online and catalogue business managed to do better, sales saw a growth of four per cent to £1.7bn.
Next chairman John Barton said: “Trading conditions in the year ahead will continue to be tough, however I believe that by focusing on our core strengths, as we did during 2008, we will see Next emerge from this period stronger than before.”