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Sales at retailer Next were down 8.9 per cent in the first quarter as its customers cut back on their spending.

Like-for-like sales – sales from stores that were open a year ago - in the group's 340 shops were down 8.9 per cent.

Next Directory, the company's catalogue, saw better results but still posted a one per cent fall in sales from last year.

Total sales were down 3.9 per cent to £738.9 million over the quarter.

The retailer said it remains "cautious" about its outlook.

"Financial pressures on our customers resulting from cost increases in food, fuel, mortgage repayments and taxation look set to continue.

"However, we continue to believe that sales in the second quarter will improve significantly as a consequence of last year's unusual weather patterns and we have budgeted on this basis," the company said in a statement.

A cold spring has kept shoppers indoors and sales have been down across the clothing sector.

In March, clothing and footwear recorded their worst performance in eight years, according to the latest figures from the Office of National Statistics (ONS).

Consumers appear to be cutting back and middle-market retailers such as Next and Debenhams are suffering the most from the squeeze, while those at the budget end of the scale – like Primark – are benefiting.

But there are signs of improvement, Next said. Sales have picked up within the last 11 days with the arrival of the warmer weather, the company said.

Full year profit is expected to be broadly in line with market consensus, Next said, and the majority of forecasts are in the range £475 million to £505 million for profit before interest.