The boss of John Lewis has hinted shoppers could start to see higher prices next year because of the collapse in the value of the pound.
Andy Street's analysis of the effects of the UK's vote to leave the EU concentrated on the risk of higher costs from sterling's slump - as it will cost the chain more to buy goods from abroad.
He said: "The big issue is the decline in exchange rates. We hedged this year but the issue is next year, it will have an effect. If inflation gets into value chain, it will feed through."
His comments suggest John Lewis will either have to cut its margins to help maintain sales or raise prices to cover increased costs and protect profitability.
While the chain is not expecting damage from the pound this year - one company which has already warned of an immediate impact this week is Sports Direct.
The fellow retailer said on Thursday it was not hedged against currency movements - meaning the weak pound will impact its product-buying power.
Mr Street rejected suggestions that the referendum result had directly impacted recent sales, explaining they were already down following the conclusion of its summer clearance and poor weather.
However, he voiced concerns for consumer confidence - as a key measure, taken after the Brexit vote came to light, showed the sharpest drop since 1994.
Separate data from accountants BDO also indicated that high street sales were sharply lower in the final week of June.
Mr Street called for a swift resolution to Britain's trade relationships with Europe and the rest of the world and clarity on the status of Europeans living and working in Britain.
"At the moment this is a political crisis, it's not an economic crisis. But one could turn into the other if not properly handled. We need to know the solution to terms of trade and want it done as soon as possible."
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