Next experiences growth in sales

U.K. clothing retailer Next recently reported significant sales growth in the third quarter of 2011, spurred by the retailer's decision to expand its home-shopping unit. Next said its brand sales increased 3.3 percent compared to the third quarter of 2010, and revenue from the home-shopping unit increased 17 percent.

Next Directory, the company's home-shopping unit, took advantage of the increase in online shoppers in the U.K. and utilised television advertisements to drive traffic and increase sales, Bloomberg reported. Even as the cost of cotton increased 8 percent in 2011, Next does not expect to charge consumers more.

Next CEO Simon Wolfson told Bloomberg he expects consumer confidence to remain subdued in the U.K. well into 2012, but he is optimistic the retailer will be able to maintain healthy sales figures until inflationary pressures ease.

Reuters reported that other retailer CEOs, such as Home Retail's Terry Duddy, believe recent government initiatives to boost consumer spending could end up hurting the retail industry in the long-term. According to Duddy, the economy must work on solving the problem itself and not rely on government funding, which stems from taxpayers.