* Clothing retailer Next shuts down online business
* Rivals such as M&S, ASOS still operating online
* Basic and comfortable clothing in demand
(Writes through with M&S, Inditex)
By James Davey
March 27 (Reuters) - Leading British fashion chain Next
has bowed to pressure from workers worried about their
health and shut its online business, cutting off its remaining
source of revenue during the coronavirus outbreak.
Rival British retailer Marks and Spencer has taken a
different tack, maintaining its online operations and citing
government advice that people should use home delivery services
to avoid going out if possible.
Next had closed all its stores on Monday, a day before
Britain went on lockdown, but continued to run its online
business.
"Next has 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," the company said.
"Next has therefore taken the difficult decision to
temporarily close its online, warehousing and distribution
operations," it said.
At 1215 GMT, Next shares were down 8.7% at 41.16 pounds.
Next, whose Chief Executive Simon Wolfson represents the
ruling Conservative party in the upper house of parliament,
generates around half of its revenue from its online business.
A number of retailers are having to scale back or halt their
online activities to try to safeguard their workers' health.
Amazon.com said last week it would stop shipping
non-essential products to consumers in Italy and France, due to
a spike in orders and the need to respect anti-coronavirus
safety measures in the workplace.
BACK TO BASICS
Other fashion retailers in Europe are trying to keep their
online business going.
Spain's Inditex, the company behind the Zara brand,
has also said its online business remains in operation.
Online retailer ASOS, which has a large fully
automated warehouse in the northern English town of Barnsley,
with on average 300 people per shift, is also still running.
However, people's orders reflect the current crisis.
Items currently selling well include everyday basics such as
socks, underwear, leggings and children's wear, an M&S
spokeswoman said.
That echoes comments from Europe's biggest pure online
fashion retailer Zalando which said this week that
demand for athleisure and gear for yoga and running has risen as
people are forced to work – and exercise – at home.
With all of Britain's shops closed, apart from food stores,
pharmacies and corner shops, there has been a growing backlash
against retailers who continue to sell online.
Next said last week it could sustain a hit from coronavirus
of more than 1 billion pounds ($1.2 billion), or 25% of annual
sales, without exceeding its debt and bank facilities.
($1 = 0.8194 pounds)
(Reporting by Pushkala Aripaka in Bengaluru and James Davey and
Keith Weir in London; additional reporting by Sonya Dowsett in
Madrid; Editing by Kate Holton and Mark Potter)
Marks & Spencer (MKS)
Next (NXT)
ASOS (ASC)