Next has warned that customers could soon face higher prices due to the impact the Iran war is having on the global economy. The fashion brand stated that shoppers in international markets may see a staggering 8 per cent increase in goods prices.
The ongoing conflict in the Middle East has already cost the brand £47 million. Disruption is expected to continue throughout the remainder of 2026. However, Next aims to limit UK price increases to no more than 0.6 per cent.
Next's Statement on Price Increases
Next said: “We plan to mitigate the ongoing cost increases caused by the conflict in the Middle East with a combination of moderate price increases in some international territories and operational cost savings. Based on our current estimates, we do not anticipate increasing our UK prices over and above the 0.6% we had forecast at the beginning of the year.”
Analyst Commentary
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, commented: “Next had previously assumed three months of disruption in the Middle East, which would have added an additional £15 million in costs. But with no clear end to the conflict in sight, oil and freight prices are expected to remain elevated for some time, and cost guidance has been upgraded. While some caution is wise, Next has developed a track record of under-promising and over-delivering in recent years. A leader in the UK market, it’s better placed than many UK retail peers to navigate a tougher backdrop.”
The warning comes as businesses worldwide grapple with rising costs due to geopolitical tensions. Next's proactive approach aims to balance customer impact with operational efficiency.
