Next boss warns of second cost of living crisis in 2023 as pound slumps

Next shares fell nearly 9% in early trading after the retailer said it now expected annual sales to fall by 1.5%, rather than rise by 1%. Photograph: May James/Reuters

Next’s chief executive has warned the UK could be heading for a second cost of living crisis next year as the slump in the value of the pound drives further price rises.

On Thursday the fashion and homewares retailer cut sales and profit expectations for the year after a disappointing August, and because of fears that additionalinflation would squeeze shoppers’ spare cash.