Next has scaled back expansion plans at its Next Clearance chain for 2004, following a better-than-expected end-of-season Sale last summer.
Chief executive Simon Wolfson said three shops opened in the second half of 2003, but but only two are in the pipeline for this half, at West Bromwich, West Midlands, and Ancholme, Lincolnshire.
'This is less than we've opened in previous years. Openings depend on how much drop stock we've got left. Clearance rates during the end-of season Sale were significantly higher than we anticipated,' he said. There are 12 clearance shops at present.
On Tuesday, Next issued a buoyant trading update for August 4 to December 24, 2003 - bucking the trend in a tough clothing sector - and forecast profit before tax for the year to January 31 to be 'not less than'£340 million.
Like-for-like sales were up 2.8 per cent on the same period in 2002, and total retail sales were up 15.8 per cent. Wolfson said better buying and improved ranges, especially in womenswear had helped.
Sales at 30 stores were affected by new openings. Excluding those, comparable sales at the remaining 274 stores increased 4.7 per cent. Full-price Christmas sales were ahead of the retailer's expectations.
Analysts reacted enthusiastically to the statement. Evolution Beeson Gregory analyst Nick Bubb said: 'We have thought for some time that Next stores looked boring, but they must be doing something right and it's hard to knock the impressive full-price trading performance they achieved pre-Christmas.'
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