Daily order limit imposed by retailer because of coronavirus crisis is met by 8.30am

This article is more than 5 months old

This article is more than 5 months old

Next reopened its website on Tuesday, only to shut it again less than two hours later after meeting its daily order target.

The clothing retailer resumed its online operations at 7am on Tuesday, almost three weeks after pulling the plug because of because of concerns about the safety of staff in its warehouses during the coronavirus crisis.

Next began taking orders for children’s clothing and small homewares after putting extra safety measures in place, including cleaning kits and staff tabards marked on the back with the message “stay 2 metres apart”.

However, the company rapidly closed its website until Wednesday as it said it had met its daily order limit, reflecting the reduced capacity at its sites. It stopped taking new orders just after 8am, but allowed those with items already in their online baskets about 25 minutes to finish up.

The relaunch of Next’s online operation came as the company’s executives said they would be waiving 20% of their salaries, during the “challenging period” of the coronavirus outbreak. If the cut covered a year’s worth of pay it would amount to a salary reduction of more than £160,000 for Next’s chief executive, Lord Wolfson. The retailer’s bosses are also deferring this year’s bonus payments which totalled £350,000 for Wolfson. However, a long-term share bonus, valued at £1.7m in the accounts, took his total haul for last year to more than £3m, his biggest payout since 2016.

Quick guide UK government support for workers and businesses during the coronavirus crisis Show Hide Income subsidies Direct cash grants for self-employed people, worth 80% of average profits, up to £2,500 a month. There are similar wage subsidies for employees. Loan guarantees for business Government to back £330bn of loans to support businesses through a Bank of England scheme for big firms. There are loans of up to £5m with no interest for six months for smaller companies. Business rates Taxes levied on commercial premises will be abolished this year for all retailers, leisure outlets and hospitality sector firms. Cash grants Britain’s smallest 700,000 businesses eligible for cash grants of £10,000. Small retailers, leisure and hospitality firms can get bigger grants of £25,000. Benefits Government to increase value of universal credit and tax credits by £1,000 a year, as well as widening eligibility for these benefits. Sick pay Statutory sick pay to be made available from day one, rather than day four, of absence from work, although ministers have been criticised for not increasing the level of sick pay above £94.25 a week. Small firms can claim for state refunds on sick pay bills. Other Local authorities to get a £500m hardship fund to provide people with council tax payment relief. Mortgage and rental holidays available for up to three months.

A statement on the website said: “In order to operate our warehouse safely, we are limiting the number of warehouse colleagues working at any time, and so we will limit the number of customer orders we can take each day.

“We have successfully tested opening and taking a limited number of orders today. Please come back again tomorrow morning.”

Analysts at broking firm Peel Hunt said: “Next hit this daily limit before 8.30am today, suggesting customer demand remains high as ever.” The analysts suggested that the retailer, which sells a number of other clothing brands as well as its own items, would benefit from an industry-wide effort to clear spring and summer stock that has piled up in warehouses during the high street shutdown.

However, Next has predicted that disruption stemming from the outbreak could wipe £1bn off this year’s sales.

Next closed its online operation in late March after concern about the safety of workers in its warehouses and criticism of the continued operation of online stores selling goods considered non-essential.

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The high street chain River Island and the luxury fashion retailer Net-A-Porter have also stopped making online deliveries while Asos has come under fire for poor conditions at its Barnsley warehouse.

Next said it had asked for volunteers from its staff to return to work this week and consulted with the Usdaw union on how to select those suitable. About 3,000 volunteers have come forward so far.

The company said it would not be using workers with a temperature, those classified as vulnerable because of health conditions, or who lived with someone vulnerable, or anyone who needed to take public transport to work.

Each member of staff returning to work will receive special training, a process which is expected to take at least several days during which time the number of orders being processed will gradually ramp up.