Next, B&M, Greggs deliver new year treats. How are they defying the cost of living crisis?

Economist Simon French noted that the savings built up by better-off Britons during the pandemic remain ‘largely intact’. If this latent spending power is now being deployed, could it ease the downturn, asks James Moore

Toast of the high street? Next’s shares were in demand after better-than-expected sales (PA)

Judging by the dire predictions that fell like snow in December, the pre-Christmas cold snap never thawed on planet retail. The freezing wind was supposed to chill January’s post-Christmas trading statements, too.

Except that it didn’t happen – at least, not in the case of the early movers. Next, B&M and Greggs instead delivered some new year treats. Up to a point.

The first of that trio, often seen as something of a bellwether, reported sales up 4.8 per cent against last year, £66m better than its previous guidance of a 2 per cent fall. The company added £20m to its full-year profit guidance and said it was clearing stock faster than expected in its sale.