Fewer shoppers hit Next profits

Next expects its sales to be negative in this year

High Street retailer Next has said sales in 2008 dropped at its stores as UK customers cut back on shopping.

Revenue fell by 1.7% to £3.3bn and profits before tax declined 13.9% to £428.8m, it said.

The company also said it had been hit by the deterioration in the value of the pound. It maintained its annual dividend at 55 pence.

Next said that it expected sales to be negative for 2009, but profits should be in line with current expectations.