Next boss Lord Simon Wolfson has cautioned that the attacks on container ships in the Red Sea are set to delay stock deliveries and hit first quarter sales.
The chief executive said it could take another two to two and a half weeks for its stock to reach the UK if ships are forced to continue bypassing the Red Sea.
He said the attacks by Houthi rebels, which have forced ships to travel around Africa instead of through the Suez Canal, could result in “moderate sales” at the start of the year if the disruption continues for a long period.
Wolfson told The Guardian: “A lot will depend on how long this goes on for.
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“The extra sailing time eats into capacity in the network and we could begin to get constraints. At the moment it is an inconvenience not a crisis.”
He added that the delays on clothes and goods coming from the Far East were “manageable”.
Wolfson is not the first boss to sound concerns about the ongoing disruption to the Suez Canal.
Ikea warned last month that it was facing delays in receiving some of its flat-pack furniture and that it was investigating alternative supply options to secure the availability of products while closely monitoring the situation.
Next revealed on Thursday that it had traded better than anticipated over the golden period after sales surged 5.7%, surpassing its +2% guidance by £38m.
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