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Next chief executive Simon Wolfson received a record pay package of £7.4m last year, up from £4.9m the previous year. His remuneration includes a basic salary of £967,000, a maximum annual bonus of £1.45m, and a long-term bonus of £4.7m. The pay increase comes as Next aims to align Wolfson's remuneration with industry standards, citing that his previous pay was 30% below the average for FTSE 100 bosses. The company's remuneration committee stated that the changes were necessary to retain and motivate its high-quality management team. Wolfson's pay package for this year could reach up to £9.27m, with his basic annual salary increasing by 3% to £1m, his maximum annual bonus rising to 200% of salary from 150%, and his long-term bonus potential increasing to 400% of salary from 225%. The changes are part of Next's efforts to ensure that its executive compensation is competitive and aligned with performance. The company's decision to increase Wolfson's pay comes on the back of Next's improved financial performance, with the retailer upping its profit guidance to £1.2bn for the year to January 2027 after better-than-expected sales in January.

Asda's executive chair, Allan Leighton, has urged the UK government to take immediate action to support farmers and ease fuel costs, as the conflict in the Middle East threatens to drive up food prices. Leighton warned that food prices would inevitably rise as a result of the conflict, citing pressure on farmers from higher fertiliser, energy, and fuel costs.While Asda has so far received only a trickle of requests for cost price increases from suppliers, Leighton expects the pace of cost increases to be volatile and vary across different commodities. He also warned of temporary shortages at petrol stations as supplies are squeezed by the conflict, with the average price of unleaded petrol in the UK rising to 150p a litre.Leighton accused the government of benefiting from £3bn of income from fuel duties as prices rise and called on them to ease these duties or support farmers on energy or other costs. He suggested that tax from fuel duty should be redistributed to support farmers in some form.The Asda boss's comments come after Simon Wolfson, CEO of Next, suggested that clothing prices could rise by 4-10% if the conflict in the Middle East extends into the autumn and factories are hit by higher fuel and fabric costs. Daniel Ervér, CEO of H&M;, also warned that a prolonged conflict could have a significant impact on consumer spending and cause inflation.Asda's underlying profits dropped by a third to £764m last year, with non-fuel sales sliding 3.3% to £21bn. However, the company reported its first month of underlying sales growth in stores in almost two years in March, after resolving IT problems linked to a switch away from services provided by its former owner Walmart.

Retailer Next has reported a £1.16bn pre-tax profit for the full year, with the Middle East conflict expected to add only £15m to fuel and air freight costs. This amount, which assumes a three-month disruption, is considered minimal and can be offset by savings elsewhere.Chief Executive Simon Wolfson added £8m to this year's profit forecast as a mechanical read-through from last year's outcome, indicating that trading had been “encouraging” in the UK and “strong” overseas until late February.The main concern for Next is the potential long-term impact of the conflict on supply chain resilience, freight rates, factory gate prices, and consumer demand. Wolfson emphasized that the company has no insight into the duration and implications of the conflict, stating, “As yet, we have no feel for the medium-term effects”.If higher costs persist, Next may put up prices, but this remains “a contingency, not a plan”. The company will provide a clearer view in its first-quarter update in May.Wolfson also offered nuanced insights, suggesting that consumer confidence may not have collapsed as much as some, like the British Retail Consortium, have claimed. He noted that UK consumers tend to react to actual higher prices, not the threat of them.Additionally, Next's spring-summer ranges are already in stores, online, and warehouses, minimizing the immediate need for adjustments. Any increases in fabric costs or production disruptions in Asian factories would mostly affect autumn-winter ranges.The stock market responded positively, with Next's shares rising 5% to £125.40. This resilience could indicate potential for a profit upgrade in May if the £15m in extra costs turns out to be the worst of it.However, no retailer will be immune if the energy price shock persists and the OECD's prediction of UK economic growth of just 0.7% this year materializes.