Next in good shape as it returns to online action

Childrenswear is the right focus as Next cautiously brings its website back to life, according to GlobalData.

This follows three weeks of being offline due to the coronavirus outbreak. Following a consultation with staff, new safety measures have been put in place, including one-way systems and new walkways at its warehouses. These have the support of the union Usdaw.

More than 3,000 members of staff have volunteered to return to work, although not all of these will begin straight away. The online relaunch will initially involve the sale of necessities such as children's clothes and selected small home items, although that could be extended in time. There will also be limits on the number of items that can be ordered in a day.

In a statement posted online, the retailer said: “We have successfully tested opening and taking a limited number of orders today (Monday, 14th). Please come back again tomorrow morning. In the meantime feel free to browse the website and add items to your favourites wishlist. We’re sorry about this, and hope that you’ll understand!”

In demand

Next is in a much better position to face the Covid-19 pandemic than many other clothing specialists given that over half of its sales are taken online, argues Sofie Willmott, Lead Analyst at GlobalData.

“It is wise to reopen its website now its warehouse staff can work safely, and childrenswear is the most logical product area to offer first given that the shorter lifespans of products continue to drive replacement purchases,” she says. “We expect this to be the best performing subsector within clothing and footwear this year as demand for adult clothing falls significantly.”

Other clothing players that quickly closed their e-commerce operations to safeguard employees’ health should consider whether they can follow in Next’s footsteps by making their distribution centres safe to work in, she adds.

“There will be much less demand for some of the formal and occasionwear brands that have closed their online sites such as Moss Bros, Quiz and Paul Smith but others such as River Island and TK Maxx sell products that shoppers will want to buy such as loungewear, homewares and childrenswear,” Willmott concludes.