NEXT has warned it may need to hike prices because of the impact of the Middle East war.
The high street chain said it’s facing a £15million hit due to extra costs for fuel and air freight.
It said it’s set aside the cash but the impact so far could be offset by savings elsewhere in the business.
Chief executive Lord Simon Wolfson said Next was currently working on the basis that the war lasts for three months.
However if the conflict is more prolonged, he said “we will begin to pass costs through as higher pricing”.
“But for today that remains a contingency, not a plan,” he said.
The Middle East region accounts for around 6% of Next’s annual sales, and the company said the conflict was holding back growth in these countries.
The issue is likely to impact costs, selling prices and consumer demand across the wider group.
