UK retailer Next says it can weather coronavirus storm

British clothing retailer Next said on Thursday the industry faced an unprecedented crisis due to coronavirus outbreak but said its balance sheet and margins would help it weather the storm.

The group, which has about 700 stores, with about 500 of those in Britain and Ireland, and also operates its online Directory and catalog business, said it was preparing for a significant downturn in sales during the coronavirus crisis. It said total brand sales fell 8.8% in the week commencing March 8 and were down 30% from March 15-17.

Next said that, given the unprecedented nature of the crisis, it could not predict the extent of the impact on its retail and online sales. It said its stress test showed the business could comfortably sustain the loss of more than 1 billion pounds ($1.2 billion), or 25%, of annual full-price sales, without exceeding its current bond and bank facilities.

Next said its priorities were to keep its workplaces and shops as safe as possible for customers and staff, securing the cash resources of the business and developing its online platform and product ranges throughout the next six months. ($1 = 0.8646 pounds)