Next makes ‘difficult decision’ to close online operation
Enderby retail giant Next has closed its entire online operation after workers complained about being asked to enter stores and warehouses to collect goods.
The firm said it has made the “difficult decision” to close online orders. A statement said that it had “listened very carefully to its colleagues working in warehousing and distribution operations to fulfil online orders. It is clear that many increasingly feel they should be at home in the current climate.”
Last week, Next sounded a warning about the coming months. It has worked out three scenarios in which sales could be down by as much as £1bn next year.
A statement said: “We have no experience of a similar crisis so there is no way of predicting the extent that the effect coronavirus will have on our Retail and Online sales. It is not yet clear how widespread the virus will be at any one time, how long the pandemic will last and what the medium to long term effect of this pandemic will be on consumer behaviour.”
Richard Lim, CEO, Retail Economics said: “The decision to effectively shut down the website shows staff shortages are playing havoc with keeping the business operational. Online was the only channel to drive any source of income and the tap has been completely turned off.
“Next’s decision to temporarily cease online orders follows River Island and Moss Bros and it’s likely that others will follow suit. For many non-essential retailers that had to shut stores, online was their lifeline to continue trading, albeit at much lower levels because of capacity constraints. Whether this shutdown will have longer-term scarring effects is dependent on the underlying health of the business and whether they can survive a cash crunch in the coming months.
“For many retailers, cash flow will soon turn negative and the question is how long these companies can continue to operate without additional financing.”
