* Partially re-opens online after March 26 closure
* Initially only selling childrenswear, small home items
* Has daily limit for orders, then closes for day
* Stores have been shut since March 23
(Adds detail, analyst comment, shares)
By James Davey
LONDON, April 14 (Reuters) - British clothing retailer Next
hit a self-imposed daily limit within hours of
re-opening its online business on Tuesday, indicating consumer
demand during the coronavirus lockdown.
Government guidelines encouraged online operations to remain
open and retailers such as Marks & Spencer and John
Lewis have kept theirs going, as have pure online players ASOS
and Boohoo.
Next shut its stores on March 23, a day before Britain went
into lockdown, and halted its online business, which provides
over half its revenue, on March 26, bowing to pressure from
warehouse workers worried about their health.
On Tuesday, Next said it had partially reopened its online
operation after implementing "very extensive additional safety
measures" and consultations with staff and its recognised union,
USDAW.
Analysts at Peel Hunt noted that Next online generates
annual revenues of more than 2 billion pounds ($2.5 billion), of
which around 25% is by Label, its third-party branded platform.
"With the industry likely to be swamped by unsold seasonal
product, we believe Next will benefit as a useful clearance
channel, especially given the group’s commission model, which
will give the brands a level of control over pricing and
ranging," they said.
Next's website reopened for items such as childrenswear and
selected small home items at 0600 GMT but reached its self
imposed limit before 0730 GMT and is now closed until Wednesday.
"The idea is to begin selling in low volumes, so that we
only need a small number of colleagues in each warehouse at any
one time, helping to ensure rigorous social distancing is
complied with," it said.
To achieve this, Next will only allow orders for the number
of items it believes can be picked safely on any given day.
At that point it will then stop taking orders and convert
the website to "browse only" until the following morning.
Initially only categories that customers most need will be
offered. Other product ranges may be added at a later date.
Shares in Next, which have lost 34% of their value so far
this year, were flat at 1033 GMT.
VOLUNTEERS
Next said it had "completely re-organised" the way its
warehouses, which are mainly near the northern English city of
Doncaster, work to enable rigorous social distancing.
It had also instigated measures such as enhanced
sanitisation and ensuring safe movement when entering, moving
around and exiting from each site, mainly through setting-up
clear one-way systems and new walkways.
Next said operations will start only with staff who wish to
return to work and can do so without using public transport and
a spokesman said more than 3,000 volunteers had already offered
to return to work and would be paid bonuses.
As all have to be trained in the new safety arrangements
before they start, Next operated with about 500 on Tuesday.
Pre-crisis the group's total warehouse operation employed
about 9,000. However, that figure also includes workers who
serve Next's stores rather than the online business.
($1 = 0.7966 pounds)
(Reporting by James Davey; editing by Kate Holton, Sarah Young
and Alexander Smith)
Marks & Spencer (MKS)
Next (NXT)
ASOS (ASC)
