UK retail giant Next has issued a stark warning that the ongoing conflict in the Middle East may force it to raise prices for customers within three months if the war persists. Chief Executive Lord Simon Wolfson stated the war is already costing the company £15 million in additional expenses, primarily from higher fuel and air freight charges. The Middle East region contributes six per cent to Next's total turnover. Wolfson emphasized the conflict's potential to ripple through the business, affecting costs, selling prices, and consumer demand beyond the current three-month window.

While Next's full-year earnings were bolstered by strong UK sales last autumn, the company confirmed the £15 million cost impact would not alter its guidance for a 4.5 per cent increase in full-price sales and profits for 2027. Next also plans to return £500 million to shareholders this year, following a £421 million special dividend last year. Next has built a reputation for reliable growth under Wolfson, achieving a 40 per cent share price rise last year to a valuation exceeding £14 billion.