Post-pandemic sales surge may be short-lived

The easing of restrictions and reopening of UK retail has been a profit boost for many companies, but the surge in momentum may be short-lived.

When high street giant Next adjusted its full year profit forecast it added that post-lockdown growth would not continue at the same pace.

With economies opening up and restrictions lifted, retailers are reporting signs of pent-up consumer demand bolstering sales, said the BBC, but there remains cautious optimism about the prospects for the UK economy.

Next increased its guidance for full year profits by 20 million pounds to 720 million pounds after trading during the 13 weeks to 1 May was stronger than expected. Full price sales were down 1.5 percent compared with the same period in 2019, compared with Next’s forecast of a 10 percent drop.

Next retail sales dropped by 76 percent after its stores were closed for the first 10 weeks of the quarter, said the BBC, but online sales jumped by 65 percent.