Retail giant Next has said the impact of the coronavirus lockdown on trading has been “faster and steeper” than expected and warned that sales will remain under pressure throughout 2020.
Sales fell more than 40 per cent in the last quarter said the retailer.
Next’s stores are still closed, but it began partially reopening its internet shopping offering two weeks ago. It says 70% of ranges are now available, with operations rejigged to comply with physical distancing rules.
In a statement to shareholders it said:
“We believe that the threat of a pandemic did not significantly affect retail sales until the beginning of March, we saw a material impact in the second week of March and declines accelerated as each day went by.
In the three days before stores closed on Monday 23rd March, Retail sales were down -86%. In reality, the majority of our customers had decided to stop shopping in retail stores before the order came to close them.”
Meanwhile senior management at John Lewis have started discussions on which department stores should keep their doors closed permanently once the coronavirus lockdown ends.
Sources close to the employee-owned retailer said it was “highly unlikely” that all 50 sites would reopen, as the company battles for its future. Dame Sharon White, the new chairman of the John Lewis Partnership and her team are set to address analysts in the City today, updating them on the company’s performance during the past week.
