Coronavirus: Next says lockdown sales plunge ‘faster and steeper’ than expected | Business News

Retailer Next has said the impact of the lockdown on its sales has been “faster and steeper” than expected.

The fashion company reported a 41% plunge in full-price sales for its first quarter to 25 April and warned that they will remain under pressure for the remainder of the year.

Next said it has plans in place to reopen stores when the coronavirus lockdown is lifted but said it will “take some time for customers to return to their normal shopping habits” and that trading would remain “very subdued” even then.

The group said: “The fall-off in sales to date has been faster and steeper than anticipated in our March stress test and we are now modelling lower sales for both the first and second half of the year.

“We believe that the effects of the coronavirus will be felt for longer than we first anticipated.

“The economic consequences and continued social distancing will mean that both retail sales and online sales will be disrupted even after full lockdown measures have been lifted.”

Shares were 0.5% lower in early trading on Wednesday.

The update comes a day after rival Marks & Spencer also issued a downbeat assessment of the retail sector’s recovery after lockdown measures are lifted.

More follows…

Source Article

Next Post

Lufthansa chief to meet Austrian chancellor to discuss state aid

FILE PHOTO: Carsten Spohr, Chairman of the Executive Board and Chief Executive Officer of Deutsche Lufthansa AG attends the Europe Aviation Summit in Brussels, Belgium March 3, 2020. REUTERS/Johanna Geron VIENNA (Reuters) – Austrian Chancellor Sebastian Kurz and Lufthansa (LHAG.DE) boss Carsten Spohr will meet in Vienna on Wednesday to […]