Sports Direct scraps plan to stay open

Mike Ashley's maverick retailer has performed a U-turn on remaining open during the coronavirus crisis after a backlash against the announcement, the BBC reported.

Prime Minister Boris Johnson ordered the closure of all non-essential shops on Monday to curb the spread of Covid-19. He said only key workers should travel to work and that people should only shop sparingly for food or medicine.

But the finance director of Sports Direct's parent Frasers Group wrote to staff to say Sports Direct and its Evans Cycles stores would stay open to serve people wanting to exercise at home.

"We stock a huge range of sports equipment designed for exercising at home … indeed home fitness is the number one trending topic on social media after coronavirus itself," Chris Wooton wrote, according to the PA news agency.

"We are uniquely well placed to help keep the UK as fit and healthy as possible during this crisis and thus our Sports Direct and Evans Cycles stores will remain open where possible to allow us to do this (in accordance with the government's current social distancing guidance)."

Wooton said home fitness was the most popular social media search term as people looked for ways to stay healthy while isolated and with gyms and recreation facilities closed.

But the company backed down after unions and politicians criticised its stance. Paddy Lillis, general secretary of the Usdaw shop workers' union told the BBC: "I can't see how it [Sports Direct] is an essential service. It's a sports clothing company."

Ian Lavery, who chairs the Labour party, tweeted: "Who on earth does Mike Ashley think he is? Take some responsibility [and] shut up shop."

The position of Frasers, renamed from Sports Direct in December, put it at odds with the government's emergency order. Johnson said his restrictions, which include clothing and electronics shops, were needed to save many thousands of lives.

Sports Direct's rival JD Sports closed all its stores on Monday to comply with the government's order and protect employees and customers. The British Retail Consortium has supported the lockdown, stating that the safety of customers and retail workers is paramount.

Frasers published a profit warning on 20 March and on Monday the company suspended its share buyback, admitting it had underestimated the impact of the government's restrictions. That was before the total lockdown announced by Johnson on Monday evening.

Before the government's order many retailers had closed their doors voluntarily including HMV, John Lewis and Primark. Pets at Home, the supplier of pet products has said most of its stores will stay open.