Via Yahoo Finance

Retail giant Next says the impact of the lockdown has been “faster and steeper” than expected as it warned sales could fall by as much as 40% over the year.

The chain – which reopened its online trading on April 14 – reported a 41% plunge in full-price sales over its first quarter to April 25, with high street sales down 52% and online sales off 32%.

It fears full-year sales could fall by as much as 40%, with the effects of the pandemic expected to leave sales lower in every quarter, even after lockdown restrictions are lifted.

Sales are expected to tumble by as much as 62% over its second quarter and could still be 28% lower over the fourth quarter to next January in the worst-case scenario.

Next said it has plans in place to reopen stores when lockdown is lifted, but would be prioritising out-of-town outlets initially, where it is easier to operate in a “socially distanced world”.

But it does not believe there will be a sudden rush of shoppers hitting stores, warning that it will “take some time for customers to return to their normal shopping habits” and that sales will remain “very subdued” once restrictions are lifted.

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.”

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

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“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.”

Nearly a quarter – 24% – of its 8,794 staff are unable to work due to childcare or because they are vulnerable or are living with vulnerable people, but it hopes to get back to around 70% of its normal workforce capacity within the next two weeks.

It initially furloughed 88% of staff through the government scheme, though this figure has now reduced to 84% after opening the internet operation.

PA Media contributed to this story

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