Next improves on April 'best case scenario' thanks to warehouse capacity and online sales

Retailer Next has exceeded its initial expectations despite the challenges posed by COVID-19.

The firm has reported a drop in sales of 28 per cent - an improvement on the best-case scenario given in its April trading statement.

Full year profit before tax, based on the firm’s central sales scenario, is now estimated at £195m.

Warehouse capacity has enabled the retailer to maintain its online operations and keep up with higher-than-expected demand.

In a statement this morning, Next commented: “The company is in a much better position than we anticipated three months ago: consumer demand has held up better than expected and our online warehouses have achieved much higher capacities than we thought possible.

“Whilst much of our time has been focussed on managing the business through the pandemic, we have not lost sight of the fact our sector was already experiencing far-reaching structural changes as consumers increase their expenditure online.

“If anything, these changes are likely to accelerate as a result of the crisis. So, we have continued to move the business forward, actively investing in the systems, Online capacity and business ideas that we believe will be important in a post pandemic world.”

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