Retailer Next in attack on ‘Luddite’ councils

The fashion retailer was refused permission by Sheffield council to develop a £10m new Home store last year and is appealing against the decision.

In its annual report, Next said: “In our dealing with local councils it is noticeable that some are much more pro-growth and pro-jobs than others.

“Many local councils are enthusiastic and efficient; but a few remain an unhealthy mix of Luddite intransigence and incompetence.

“Going forward, in areas where councils traditionally have got away with just saying ‘no’, we will be more active in harnessing the law and the full weight of public opinion to campaign for growth.”

A spokesman for Sheffield council said the local authority refused planning permission because the proposal went against council policy for retail development.

“The overall aim is to try to protect retail in the city centre,” the spokesman added.

The group’s appeal claims that the proposed development would not cause “any material impact” on confidence and is not contrary to the city’s core strategy policy.

It said the Home store range would be “complementary to the fashion-led offer in Sheffield city centre”.

Next unveiled a 9 per cent rise in profits yesterday but admitted trading in recent weeks had been “quiet”.

“Unusually cold weather is definitely suppressing sales of summer stock that we’d normally be selling,” said chief executive Simon Wolfson. “How much difference that will make, we’ll only know when we see some warmer temperatures and more spring-like weather.”

The group, which has 541 stores, said current demand reinforced its cautious approach as it budgets for stores to take moderately less than the previous year.

Sales in its retail estate were flat at £2.19bn in the year to January but with its online Directory business increasing revenues by 9.5 per cent to £1.2bn the blue-chip company’s profits rose to £621.6m.

Chairman John Barton said the group performed well in difficult conditions. However, he added: “We anticipate another challenging year ahead, with little if any growth in the UK retail economy.”

Mr Barton said: “In these circumstances we again aim to achieve growth by investing in the brand, improving our products, controlling costs and returning cash to our shareholders.”

Sales in the current financial year are at the bottom of its target range, although Next hopes this situation will improve as temperatures return to normal.

It is targeting profits of between £615m and £665m for this year, helped by stability in supply chain costs.

However, the company warned of potential price rises next year if the pound remains at its current depressed rate against the US dollar.

Shares were 1 per cent higher following the update, which came on the day that Next opened its latest store at the new £350m Trinity Leeds shopping centre.

It added ten new stores last year.

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