Next Retail Warns of Store Closures After Pay Ruling

Next has warned that it may be forced to close stores following a landmark legal ruling requiring the retail giant to equalize pay between predominantly female store staff and mostly male warehouse workers. An employment tribunal ruled that Next failed to prove that the pay discrepancy was not due to sex discrimination. The company plans to appeal the decision, which affects over 3,500 employees, but has warned that failure to win the appeal could lead to significant financial burdens and store closures due to increased operating costs. Next's legal team is confident in their grounds for appeal, though the process could take at least a year. The ruling marks a significant moment in equal pay claims against national retailers, potentially inspiring similar actions elsewhere. In recent half-year results, Next reported strong sales growth, but acknowledged the adverse impact the ruling could have on the viability of some stores and their warehouse operations.