Crisis brewing at JD Sports as orders delayed
A problem is brewing at JD Sports Fashion (JD.) where customers have experienced order delays and poor customer service, according to comments on social media. Negative sentiment towards the brand could potentially hurt earnings, particularly if the situation isn’t resolved soon.
‘Due to increased social distancing measures and lockdown restrictions across large parts of the UK, we are currently experiencing high levels of demand from customers choosing to shop online,’ a JD Sports spokesperson told Shares.
‘At the same time, and in line with the latest Government guidelines, we have also had to reduce the number of colleagues working in our UK distribution centre to ensure they are able to work safely on site while practising social distancing. Unfortunately, this has resulted in some temporary delays in shipping online orders.’
The spokesperson insisted: ‘We are working hard to reduce this backlog and are already in the process of bedding in new automation technology to increase our online fulfilment capacity ahead of Christmas and Black Friday.’
JD is benefiting from buoyant demand for athleisure as people continue to work from home during the pandemic. Yet on its Instagram and Twitter feeds, customers have complained that the web page and app have not been functioning properly and that orders have been cancelled without warning or not even shipped.
Warehouse problems previously caused a big share price sell-off at ASOS (ASC:AIM).