Sales at fashion and homeware retailer, Next, have fallen by 2.5% over the last three months.

The fall has led to a 6% drop in its share price. And the company has warned that the 'market remains challenging', as reported by the BBC .

Next also cut the top end of its profit forecast, and now expects full-year profits of between £680m and £740m, compared with an earlier forecast of £680m to £780m.

Store sales fell by just over 8% during the last quarter. But there is still demand for catalogue sales, with overall performance boosted by the company's Directory sales, which rose 3.3% for the 13 weeks to 29 April.

Here in Gloucestershire, there is still plenty of demand for Next. Work is set to start soon on the new flagship Gloucester store at the Peel Centre. The £14m, 28,000 square foot store will offer homeware as well as fashion and will include a cafe and two mezzanine floors.

There are two Next stores in Cheltenham, one in Quedgeley and an outlet store at Gloucester Quays.