Next is making a major change to checkouts after issuing warning to customers

Chief executive Lord Simon Wolfson said the first set of self-service machines will be installed in selected stores in February and March - and could be rolled out further if successful

Next will trial self-service tills this year after it issued a warning over a £67million increase in wage costs following the Budget.

Chief executive Lord Simon Wolfson told Retail Gazette that the first set of machines will be installed in selected stores in February and March. If successful, then more could be rolled out across the business later in the year. Lord Wolfson said the business is looking to make “small improvements and operating efficiencies” due to the planned rise in employer National Insurance contributions and the minimum wage, set to take effect in April.

This could see customers use self-service machines to return unwanted products. He said: “You could self scan and return and put it in a secure locker rather than take it to a till.” But Lord Wolfson said Next would not be looking to make redundancies, and added: “As we get natural turnover in our staff, where we introduce efficiencies, we will take on less new people rather than lose existing people.”

However, earlier this week, Next said it will need to push through an "unwelcome" 1% rise in prices to offset the hit. It expects this will offset around £13million of its higher wage bill. Employers will pay more National Insurance from April 6, with the rate rising from 13.8% to 15%. The earnings threshold for when employers start paying this tax will also be lowered from £9,100 per year to £5,000.

At the same time, minimum wage will rise by 6.7%. For someone aged 21 and over, minimum wage will rise from £11.44 an hour to £12.21 an hour, while those aged 18 to 20 will see their rate rise from £8.60 an hour to £10 an hour. If you're under 18 or you're an apprentice, minimum wage is rising from £6.40 an hour to £7.55 an hour.

The warning from Next came as the retailer reported a 5.7% rise in underlying full-price sales for its fourth quarter so far, and increased its full-year pre-tax profit outlook once again, pencilling in a 10% jump to £1.010billion. This compares with previous guidance for a 9.5% rise to £1.005billion, helping shares lift 2%.

But over the new financial year to January 2026, it expects sales growth to slow to 3.5% and for group profits to increase by a more muted 3.6% to £1.05billion. Next said: "We believe that UK growth is likely to slow, as employer tax increases, and their potential impact on prices and employment, begin to filter through into the economy."