News

18 Nov, 2020
Target welcomes new MD as Marina Joanou moves on
SOURCE:
Ragtrader
Ragtrader

Target Australia has welcomed a new managing director as Marina Joanou steps back from her role.  

Stepping back to take a period of leave before determining her next role within Wesfarmers, Joanou has been succeeded by Richard Pearson, who joined the Kmart Group in September 2020. 

Joanou served over two years as the MD of Target, with Wesfarmers stating that she was crucial in the realignment of its strategy. 

"Ms Joanou’s leadership has helped steer Target through considerable change over the course of this year and she has played a significant role in resetting the Target strategy," Wesfarmers said. 

Pearson brings more than 20 years of retail and consumer goods experience to Target, having previously served as ASDA, Coles and Mecca. 

The news comes as Target reports -2.2% total sales growth for Q1 FY21. 

18 Nov, 2020
Fantastic Furniture worth up to $959m: IPO sponsor brokers
Financial Review

Greenlit Brands' plans to re-list Fantastic Furniture are a step closer to fruition.

The company's sponsor brokers Macquarie Capital and Credit Suisse fired off pre-deal investor education reports to fund managers on Friday morning, valuing the furniture retailer.

Credit Suisse's valuation was the chunkier one out of the pair, and its analysts said Fantastic was worth between $762 million and $959 million. Those numbers were based on an enterprise value to EBIT multiple between 10.2 times and 12.9 times.

Fantastic is forecast to post $74.5 million earnings before interest and tax in fiscal 2021.

Macquarie's valuation was much less bullish and in fact the top end of its valuation range fell below the bottom end of Credit Suisse's.

The silver donut's analysts said Fantastic was worth between $435 million and $669 million on an enterprise value basis, based on an earnings multiple between 6.5 times and 10 times.

"In setting the range we considered Fantastic Furniture's high online sales penetration relative to the sector and a track record of consistent revenue growth and market share gains in recent periods," the analysts said.

Both brokers identified COVID-19 as presenting a risk to their valuations and Fantastic's business. Other risks included competition and supply chain disruption.

The pre-deal reports come almost a month since Credit Suisse and Macquarie took a select bunch of fund managers on half-day site tours at some of Fantastic's New South Wales-based facilities and about five months since Greenlit Brands called for pitches from investment banks to float Fantastic.

18 Nov, 2020
'Life will go on' – Universal Store sales surge but ASX debut a fizzer
Financial Review

Alice Barbery, the chief executive of youth fashion retailer Universal Store, was sanguine about the retailer's less than illustrious $280 million debut on the Australian stock exchange on Monday.

Universal Store shares, issued at $3.80, were poised for a strong debut after the retailer revealed same-store sales had surged 33 per cent over the last seven weeks. But by the close of trade not a single share had changed hands after the worst ASX outage in four years.

"This is hardly the world's greatest disaster in the scheme of things," Ms Barbery told The Australian Financial Review. "Whether we're trading today or trading tomorrow, we're here for the long term.

 

Universal Store CEO Alice Barbery: "Whether we're trading today or trading tomorrow, we're here for the long term."  Attila Csaszar

"I'm not going to lose my mind over one day," she said. "It's 2020 – people have had bushfires and lost houses and lost lives with coronavirus," said Ms Barbery, who lost her own home in the Brisbane floods in 2011.

"I can hardly hold my breath and turn blue because of this – it will bounce back tomorrow and life will go on."

Shareholders in the Brisbane-based youth apparel retailer took advantage of a COVID-19-inspired surge in spending to sell down their stakes in the retailer, two years after buying the business from founders Michael and Greg Josephson.

Brett Blundy's BB Retail Capital, Trent Peterson's Catalyst Direct Capital Management and Adrian MacKenzie's Five V Capital originally planned to float Universal Store in March or April 2020 but pulled the plug when the pandemic forced non-essential retailers to close their doors in the first national lockdown.

Universal Store's sales dropped during the pandemic, enabling the retailer to claim JobKeeper subsidies, but same-store sales, which have risen by an average 13 per cent a year for the last six years, accelerated as stores reopened.

We're constantly seeing the restrictions lifting around the country and people are enthusiastically getting out and about.

— Alice Barbery, chief executive, Universal Store

Ms Barbery, who took the helm in 2017 after seven years as chief operating officer, said that based on unaudited management accounts for September, Universal Store had met the proforma September quarter revenue, earnings and net profit forecasts in the prospectus.

The group, chaired by former Super Retail Group CEO Peter Birtles, had forecast September-quarter revenues to grow 16.5 per cent to $45.8 million, underpinned by same-store sales growth of 26.2 per cent and online growth of 100 per cent. Earnings before interest and tax were forecast to double to $10.6 million – boosted by $3.4 million in net JobKeeper benefits – and net profit was expected to rise 103 per cent to $7.3 million.

Ms Barbery said Universal Store's target customers were spending money on fashion and accessories they otherwise would have spent on festival and concert tickets and overseas travel.

"We're constantly seeing the restrictions lifting around the country and people are enthusiastically getting out and about," she said.

"A new outfit makes you feel good about yourself and there haven't been too many things to feel good about this year."

Universal Store's core demographic – fashion-forward 15-to-34-year-olds – have been hard hit by the pandemic but many customers received JobKeeper and JobSeeker subsidies, which will fall away in March.

"March is a long way off and it's hard to know what the world will look like, but the bulk of people who were getting JobKeeper have come off already and our October results demonstrated we're still the recipients of good customer sentiment," Ms Barbery said.

Universal Store raised $147.8 million at $3.80 a share, $38.4 million in primary issuance and a $109.4 million sell-down by existing shareholders, in the third largest IPO this year after Adore Beauty and Home Co daily Needs REIT.

BB Retail Capital reduced its stake from 38 per cent to 16.4 per cent, Five V Capital from 14.8 per cent to 6.4 per cent, Ray Itaoui's Mountainview Trust from 14.3 per cent to 6.2 per cent and Catalyst from 3.6 per cent to 2.15 per cent. Other shareholders include the management team with 9.4 per cent and the Myer Family Investment office with 3.1 per cent.

The remaining proceeds will be used to repay corporate debt, lift cash holdings, and pay transaction costs associated with the offer.

Ms Barbery said the retailer, which has 65 stores, planned to open five new stores a year, in line with its long-term average, but might open more if landlords were prepared to write good deals.

Universal Store differentiates itself from rivals such as Premier Investments' Dotti, Portmans and Just Jeans chains, General Pants and Myer by stocking exclusive products, selling private-label brands such as Perfect Stranger, Luck & Trouble, Common Need and Token, and exclusive ranges sourced from third-party brands such as Herschel, Abrand, Wrangler and Converse.

It emulates fast-fashion chains by delivering new stock into stores daily and using short-run buying cycles to encourage shoppers to buy quickly or risk missing out.

Sales have risen at a compound annual rate of 25 per cent over the past five years, reaching $155 million in 2020, and earnings before interest and tax have risen 32 per cent a year over the past three years, reaching $24 million in 2020 (including $5.1 million in JobKeeper subsidies).

18 Nov, 2020
Gen Z is set to take over the economy in a decade, despite potentially losing $10 trillion in earnings because of the pandemic
Business Insider Australia

In a little over a decade, Gen Z will be taking over the economy.

Gen Z currently earns $US7 trillion across its 2.5 billion-person cohort, according to a Bank of America Research primer on the generation, called “OK Zoomer.” By 2025, that income will grow to $US17 trillion, and by 2030, it will reach $US33 trillion, representing 27% of the world’s income and surpassing that of millennials the following year.

The report defines Gen Z as those born between 1996 and 2016. The oldest of Gen Z turn 23 in 2020, and the oldest millennials turn 39 this year. The youngest generation has the fastest-growing income, per the report, led by the US, closely followed by China.

This earnings growth is short of what it would be without the pandemic, of course. Gen Z students could lose $US10 trillion of lifecycle earnings due to Covid lockdowns, the World Bank has estimated.

Repeating millennials’ rocky career paths

American Gen Zers and millennials have been financially hardest hit in the coronavirus recession, suffering from unemployment rates greater than those during the peak of the Great Recession. But Gen Z is repeating the same rocky start to their careers as the oldest millennials: graduating into a recession.

Stanford research shows that recession graduates typically see stagnant wages, lasting for up to 15 years. The author behind this research, Hannes Schwandt, assistant professor at Northwestern University’s School of Education and Social Policy, previously told Business Insider that this the delay in wealth accumulation isn’t necessarily due to lack of jobs, but that recession graduates typically start at “lower quality” jobs.

A potential upside to this, Schwandt said, is that graduates job-hop to play financial catch-up, which can make them more flexible and help advance their career.

“Over time, what you see in these cohorts is a higher degree of mobility from one employer to the next,” Schwandt said. “It helps them climb up the quality ladder.”

Gen Z may want to look to millennials for an idea of what’s to come, as the so-called “job-hopping generation” graduated into the 2008 financial crisis, then entered the 2020 recession before their oldest members turned 40 years old. Now, before the economy has even recovered from the effects of the pandemic, millennials have just another decade left as the major driving force of the economy.

12 Nov, 2020
Rent collection rises as more Westfield stores open
Financial Review

Westfield operator Scentre's rent collection rate hit 96 per cent last month as more stores opened across its national portfolio of malls, including in Victoria.

The retail landlord collected 85 per cent of its gross rental billings over the September quarter, with the proportion rising progressively each month, according to Scentre's quarterly update.

The improving rent collection follows a bitter stand-off between the powerful landlord, led by Peter Allen, and some of its largest retailers during the height of the pandemic disruption. The dispute at one point prompted Scentre to close dozens of stores operated by Mosaic Brands and Strandbags in its Westfield malls.

Some 92 per cent of retailer stores across the 42 Westfield malls around the country are open including in Victoria. Scentre expects more stores in Victoria to reopen over the coming weeks.

Excluding Victoria, comparable speciality in-store sales – a key metric watched closely by analysts – were down 1.9 per cent over the September quarter.

Scentre did not release a year-on-year result but the September result was an improvement on the half-year result which showed speciality sales were down 12.1 per cent over that six month period.

Also doing better were comparable in-store sales for the major retail tenants which were up 1.0 per cent over the third quarter.

Macquarie analysts noted that Scentre's continued rent collection meant that the total amount of cash shortfall – the rent not collected – was flattening.

However, the analysts also seized on the occupancy rate of 98.4 per cent, noting it had dipped around 40 basis points lower than three months earlier.

"While occupancy has been largely maintained, we expect continued pressure as support programs conclude," the analysts wrote in a client note on Thursday.

"There are some positive items in today’s update, namely cash collection," they wrote.

"However, other indicators such as the increase in vacancy and shortfall in speciality sales in NSW are the key negative items in our view."

The shopping mall's guidance remains withdrawn, after it pulled its outlook in March, during the initial onslaught of the coronavirus.

On Thursday, the listed landlord reaffirmed that its intention was to pay a distribution early next year from surplus net operating cash flows received during 2020.

In September, Scentre raised $US3 billion ($4.01 billion) through a hybrid debt issue to bolster its battered balance sheet, the first such issuance of a debt hybrid by a property trust since the global financial crisis.

12 Nov, 2020
Rent collection rises as more Westfield stores open
Financial Review

Westfield operator Scentre's rent collection rate hit 96 per cent last month as more stores opened across its national portfolio of malls, including in Victoria.

The retail landlord collected 85 per cent of its gross rental billings over the September quarter, with the proportion rising progressively each month, according to Scentre's quarterly update.

The improving rent collection follows a bitter stand-off between the powerful landlord, led by Peter Allen, and some of its largest retailers during the height of the pandemic disruption. The dispute at one point prompted Scentre to close dozens of stores operated by Mosaic Brands and Strandbags in its Westfield malls.

Some 92 per cent of retailer stores across the 42 Westfield malls around the country are open including in Victoria. Scentre expects more stores in Victoria to reopen over the coming weeks.

Excluding Victoria, comparable speciality in-store sales – a key metric watched closely by analysts – were down 1.9 per cent over the September quarter.

Scentre did not release a year-on-year result but the September result was an improvement on the half-year result which showed speciality sales were down 12.1 per cent over that six month period.

Also doing better were comparable in-store sales for the major retail tenants which were up 1.0 per cent over the third quarter.

Macquarie analysts noted that Scentre's continued rent collection meant that the total amount of cash shortfall – the rent not collected – was flattening.

However, the analysts also seized on the occupancy rate of 98.4 per cent, noting it had dipped around 40 basis points lower than three months earlier.

"While occupancy has been largely maintained, we expect continued pressure as support programs conclude," the analysts wrote in a client note on Thursday.

"There are some positive items in today’s update, namely cash collection," they wrote.

"However, other indicators such as the increase in vacancy and shortfall in speciality sales in NSW are the key negative items in our view."

The shopping mall's guidance remains withdrawn, after it pulled its outlook in March, during the initial onslaught of the coronavirus.

On Thursday, the listed landlord reaffirmed that its intention was to pay a distribution early next year from surplus net operating cash flows received during 2020.

In September, Scentre raised $US3 billion ($4.01 billion) through a hybrid debt issue to bolster its battered balance sheet, the first such issuance of a debt hybrid by a property trust since the global financial crisis.

5 Nov, 2020
Tory Burch invests in APAC region with new appointment
SOURCE:
Ragtrader
Ragtrader

American luxury label Tory Burch has named Thiabault Villet as its new president for APAC. 

Villet's role will commence on December 28 and he will oversee all aspects of the brand’s operations in the Asia-Pacific region, reporting to CEO Pierre-Yves Roussel. 

Tory Burch recognises the region as a key market, having opened its first APAC boutique in 2010 and growing to 146 free-standing stores across China, South Korea, Southeast Asia and Australia.

Speaking on the announcement, Roussel said that Villet's appointment demonstrates the brand's commitment to the region. 

"The development of our business in Asia is a strategic priority for us.

"Recruiting an executive with Thibault’s depth of experience is a testament to our continued commitment to the region.

"His entrepreneurial mindset and impressive track record in our industry make him a natural fit and a welcome addition to our team.

"I look forward to working with him," he said. 

Villet joins the business from One in Beauty the entity combining the Revlon and Arden brands, where he served as Asia president. 

During his tenure at One in Beauty, Elizabeth Arden became the number seven prestige brand on China e-commerce platforms, with Villet spearheading the digital transformation of the brand in the region.

Prior to One in Beauty, Villet was chairman and co-founder of Mei.com, a Chinese luxury and fashion flash sales retailer that was acquired by Alibaba in July 2015.

Earlier in his career, he was the first Greater China president at Coach and vice president of the Luxury Products Division for the L’Oreal Group in Japan and in China. 

Speaking on his appointment to Tory Burch, Villet said that he is excited to commence his new role. 

"I have long admired Tory Burch as a purpose-led company, for its iconic, beautiful designs and for the superior quality of its products.

"The company’s growth in the APAC region has been impressive, and I am excited about working with the team and building on the brand’s extraordinary strengths," he said. 

Tory Burch operates two boutiques in Australia at Westfield Bondi Junction and Westfield Sydney, as well as an Australian website. 

4 Nov, 2020
"They were all terrible": Honey Birdette to disrupt swimwear market
SOURCE:
Ragtrader
Ragtrader

Intimate apparel retailer Honey Birdette has ventured into the swimwear space.

The retailer has released a capsule range of swim pieces, with briefs starting at $79.95 and sets peaking at $249. 

Honey Birdette founder Eloise Monaghan said the range will disrupt the traditional swim market. 

"I went shopping and I just couldn't find a swimsuit I liked," she said.

"I went into several retailers and they were charging $100 just for a swimming top and they were all terrible."

The range features black, red and tiger print garments embellished with gold hardware. 

"This is about putting the sex back into swimwear. The prints out there at the moment - oh my God - what's with all the Fijian flowers? No-one's thinking about it," Monaghan said.

"No-one's putting detail into it, it's just churn and burn. Our range has those wet sexy looks that can control certain aspects of the body, and you can be confident in going from Bondi to a bar."

Details on the chlorine and salt water resistant microknit garments include gold eyelets and fox medallions. 

"We wanted to do something that was fairly decadent with big custom-designed buckles. Something that feels like HB but was designed to be seen rather than just being a functional piece," Monaghan said.

"The high bikini line is huge at the moment, but we wanted some control with it as well so we've used some fairly structural fabrics."

Honey Birdette briefly released a swimwear range previously, with Monaghan confirming the new venture has been better planned. 

"We didn't spend enough time on it last time, and it really takes 12 months to get the technical and the testing right," she said.

"We just went too quickly and I went too James Bond with it. There was too much neoprene, and it's a much lighter fabric palette these days."

She said the brand is keen to experiment with new product categories. 

"One day, swimwear for us could even be a whole new store concept with water running down the changeroom walls behind glass. But at the moment, it fits quite well within Honey Birdette."

And as for the demographic the new range will cater to, Monaghan said it's fluid.

"I don't think you can ever put an age on HB. I always get 'who's your demographic?' but I don't actually believe in demographics anymore," she said.

"The Honey Birdette customer can be an 82-year-old woman or a 17-year-old, a gay man or a transsexual. Our customers are so varied."

4 Nov, 2020
Myer board, CEO in Lew's sights after chairman resigns
Financial Review

Near the end of a horror year marked by the coronavirus pandemic, Myer is facing more disruption after billionaire retailer Solomon Lew forced chairman Garry Hounsell to fall on his sword and called on the entire board to step down or be sacked.

Mr Hounsell resigned hours before the annual meeting on Thursday after Mr Lew's Premier Investments, which owns 10.8 per cent of the stock, and fund manager Geoff Wilson's Wilson Asset Management (WAM), which owns 7.8 per cent, indicated they would vote against his re-election.

Mr Hounsell's resignation was a major victory for Mr Lew, who has been attempting to take control of the board since Premier bought a 10.8 per cent stake at $1.15 a share three years ago. The shares have fallen to 22¢.

Unappeased, Mr Lew said Mr Hounsell's ousting was a signal to the entire Myer board – including chief executive John King – that its time was up and directors should step aside or face being kicked out at an extraordinary general meeting.

"Garry Hounsell’s resignation ahead of today’s Myer AGM is the 'green shoot' that Myer shareholders have long been waiting for," Mr Lew said.

Myer also suffered another strike against its remuneration report, with 33.6 per cent of shares voted against it. The retailer incurred a second strike against its remuneration report in 2018, but avoided a board spill, and narrowly avoided a third strike in 2019.

JoAnne Stephenson, a former KPMG partner who joined the board four years ago, has been appointed acting chairman while a global search takes place to find a new chairman.

This will now allow Myer to benefit from clear air following a challenging period for the company.

— Geoff Wilson, Wilson Asset Management

However, Mr Lew said a worldwide search was a waste of shareholders’ time and money and he would consult with other shareholders to put together a new board with a majority of independent directors and an independent chairman.

"Myer is an Australian icon and it requires a board with proven Australian retail credentials and commercial experience, including key skills in property, information technology, e-commerce and logistics," he said.

Premier will seek to have at least one representative on the board, in line with its holding. Mr Lew's previous "dream team" consisted of former Myer Grace Bros managing director Terry McCartney and former UBS banker Tim Antonie – both of whom are Premier Investments non-executive directors –as well as Stephen Sewell, the former CEO of shopping centre owner Federation Centres.

The question now is whether Mr King and other directors will resign or whether Mr Lew will have to call an EGM and rally enough shareholder support for a board spill.

Mr Wilson said he did not support Mr Hounsell's re-election because Myer needed a circuit breaker but dismissed suggestions he too had lost faith in Mr King. WAM had no current plans to support an EGM.

"We are supportive of the Myer management team," he said. "We voted for the REM report and the granting of performance rights for Mr King."

Mr Wilson, who recently called on the retailer to shrink its board and directors fees, has been a vocal supporter of Myer in the past and had teamed up with former shareholder Investors Mutual to thwart Mr Lew's attempts to roll the Myer board in 2018. However, he had second thoughts about Mr Hounsell's re-election.

"This will now allow Myer to benefit from clear air following a challenging period for the company," he said.

Ms Stephenson said Mr Lew's campaign would be damaging for customers, the Myer brand and shareholders – "what Myer needs now more than ever is stability".

Myer shares fell 6 per cent to 22.5¢, suggesting that shareholders believe the retailer is facing yet another period of disruption.

Ms Stephenson said it was essential that Mr King and the management team were able to focus on the business during the peak trading period between Black Friday and the January stocktake sale.

Mr King defended his Customer First turnaround plan, saying it was the right plan but needed to be accelerated, re-sequenced and expanded to enable Myer to capitalise on opportunities in a COVID-normal world.

Myer was in new talks with landlords to reduce floor space by at least another 60,000 square metres after locking in similar reductions. About 21 stores could close over the next eight years.

Mr King said Myer was well-stocked for Christmas and its online business continued to grow strongly after jumping almost 90 per cent in the July-half. Online sales had grown even faster since July and he said they would soon be a $1 billion business.

He also dismissed reports that Myer had $340 million of net debt and risked going into administration, saying it was net cash positive, and a $340 million financing facility was an overdraft to meet its funding needs during peak trading periods.

"We believe the business is on the right footing for a new COVID-normal retail world."

Several shareholders at the AGM asked why Myer was not prepared to work with Mr Lew and Premier, and tap their expertise.

Ms Stephenson said the board was prepared to work constructively with shareholders when there was a positive intent to create value for them.

30 Oct, 2020
The boom in sales and e-commerce during the pandemic has led to big gains for some retail bosses in this year's AFR Rich List
Business Insider Australia

When the ship steadies from the coronavirus pandemic and we start returning to some semblance of normality, retail is one of the sectors which will change permanently.

The advent of lockdowns and social distancing saw Australians accelerate a long trend toward e-commerce and online retail. According to research by Deloitte, Australia enjoyed a $4 billion e-commerce boom during the pandemic, with online small businesses seeing a boon from the country’s supercharged online spending habits.

Of course, it’s not the small business strivers who end up emblazoned on the glossy pages of The Australian Financial Review’s 2020 Rich List.

The Rich List, which lands in full on Friday, has seen big gains for Australia’s e-commerce barons, who have profited off the coronavirus bump.

Ruslan Kogan, founder and CEO of Kogan, has reentered the Rich List after falling off it in 2019 thanks to a low share price at the time. Following vigorous growth as entertainment-starved, locked down Australians turned to online retailers to get their fix – Kogan’s sales were up 39.3% compared to the 2019 financial year – Ruslan’s net wealth currently sits at $575 million.

Similar boons went to Harvey Norman boss Gerry Harvey, who saw his wealth surge by 35% to $2.57 billion. Though Harvey Norman is best known as a bricks-and-mortar retailer, it too capitalised on e-commerce when its stores shut down nationally, and then again in Melbourne.

The company reported a 7.6% increase in total revenue and a 19.4% jump in net profit, which Harvey said was the best results he’d seen in over 60 years of retailing. Of course, the famously ornery executive was quick to dismiss the role of e-commerce, despite not breaking it out in the company results.

“People get out there and talk about how [online is] going to take over all the sales, and it’s going to be 70 per cent of refrigerator sales or something, and I said that’s a con, and I still maintain it’s a con,” he told the Sydney Morning Herald.

Either way, he’s done well for himself out of the pandemic – a fact which got him in social media hot water back in March when he celebrated that fact while dismissing the seriousness of the virus.

The middlemen of the e-commerce world also saw big gains. Afterpay founder Nick Molnar – who became Australia’s youngest self-made billionaire after the buy now, pay later company’s remarkable share rally – now sits at number 50 on the Rich List with a net worth of $1.86 billion.

Competitor Zip also saw its co-founder Larry Diamond debut at with an estimated fortune of $552 million.

Expect to see more online sellers worm their way onto the Rich List in the coming years.

30 Oct, 2020
Super Retail flags multimillion online investment as sales skyrocket
SOURCE:
The Age
The Age

Super Retail Group is pumping more money into beefing up its online capabilities as the retailing collective prepares to better tackle the rising tide of digital-only sales.

In a trading update ahead of its annual general meeting on Wednesday, Super Retail said online sales had grown 132 per cent across its four brands for the first quarter of the 2021 financial year. Super Retail operates Supercheap Auto, Rebel Sport, BCF and Macpac.

As a result, the company told investors it now expects its capital expenditure for the year to be $100 million, with much of it focused on increasing online capabilities.

"The dynamic growth we have seen in our digital sales, through both click & collect and home delivery, has reinforced our conviction in our omni-retail business strategy," chief executive Anthony Heraghty said.

Super Retail’s shares ended Wednesday's session 4.8 per cent higher at $11.69 following the update.

Online retail has boomed amid the COVID-19 pandemic. Digital sales at each of Super Retail's brands have more than doubled since the end of June.

Total sales, which include in-store, rose 25 per cent across the group for the same period despite 94 stores being closed through Melbourne’s second lockdown. Sales were positive across all brands bar Macpac, which fell 2 per cent due to being "heavily impacted" by the lockdown.

While the company did not provide any update on its earnings, Mr Heraghty said a 2 per cent jump in gross margins, thanks to a reduction in discounting, had boosted Super Retail's bottom line.

"Our considered approach to promotional activity in response to strong levels of consumer demand - to help manage inventory in the leadup to Christmas and optimise gross margin - and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line," he said.

Despite the bullish trading update, the company only narrowly avoided a 'first strike' against its remuneration report at Wednesday's AGM. A total of 17.18 per cent of investors voted against the report, just shy of the 25 per cent required.

Proxy firm ISS had advised its clients to vote against the report due to excessive short-term bonuses it awarded to Mr Heraghty, especially considering Super Retail's $6.5 million claimed in JobKeeper. It also took issue with the lack of specific hurdles required for the awarding of bonuses.

Investors also protested the awarding of 239,440 performance rights to Mr Heraghty, with 20.9 per cent voting against the proposal. ISS labelled the grant as "discretionary and less-than-rigorous" and questioned its grant price of just $7.19.

30 Oct, 2020
GlamCorner receives $12 million funding boost
SOURCE:
Ragtrader
Ragtrader

GlamCorner has closed a $12 million series B funding round to accelerate growth and operations.

The fashion-rental business will use the funding to realise its dream of becoming the 'Netflix for fashion,' allowing customers to have access to an endless online wardrobe for a monthly subscription fee. 

GlamCorner will invest in its collection, expanding it from 28,000 articles of clothing to over 60,000 articles and will introduce new product lines and brands. 

The business will also expand its fulfilment and distribution footprint which will include a significantly larger warehouse and fulfilment centre, garment care, laundry operation and logistics teams.

The new laundry will be designed to preen and clean up to 250 tonnes of clothing per month. 

GlamCorner COO and co-founder Audrey Khaing-Jones said that the business is thrilled to reach this milestone. 

"We have been working towards this moment at GlamCorner for eight years now — the moment fashion rental becomes an everyday part of our customer’s wardrobe.

"We’re so excited to offer our customer a better deal and via a fulfilment and logistics capability large enough to realise our ambition to be an Endless Online Wardrobe for every woman in the country," she said. 

The business will invest in its growing subscription box rental service ('Netflix for fashion') similar to US company Rent the Runway.

This investment will see GlamCorner launch exclusive products in collaboration with local and international designer labels - amounting to the 'Netflix Originals' of fashion rental. 

GlamCorner's tech-platform and team will also receive a funding boost with the business set to invest in a native iOS app, which is currently in development, as well as further fulfillment automation and systems. 

The investment round was led by family-owned, responsible and sustainable investment group, Treïs. 

Airtree Ventures, Giant Leap Fund, Marshall Investments and Silicon Valley-based Partners For Growth have also doubled down on their previous investments in the company.

Peter Gammell and MediaCap Fund are new investors in the oversubscribed round, with this round bringing GlamCorner’s total funding to date to $18 million from some of Australia’s leading investors in this space.

"We are delighted to welcome such high-quality investors on board for our Series B who share our vision and see the scale of the opportunity in front of us," Khaing-Jones said. 

"Having the backing and endorsement of a family owned responsible and sustainable investment Group such as Treïs exemplifies our goal to create a generational shift in fashion consumption," she said. 

GlamCorner offers access to global and Australian leading designer brands including Zimmerman, KITX, Camilla & Marc, Thurley and Ginger & Smart.

30 Oct, 2020
JB Hi-Fi sales surge into new year
Financial Review

JB Hi-Fi boss Richard Murray has sought to temper expectations for the high flying retailer, saying he does not expect a continuation of the surging double-digit sales achieved in the first quarter for the remainder of the financial year.

The $5.4 billion company said at the annual meeting on Thursday that sales in the Australian business jumped 26.7 per cent in the first three months of fiscal 2021, while home appliances chain, The Good Guys, gained 30.9 per cent.

 

JB Hi-Fi boss Richard Murray says he is sticking with the top job for some time yet, after a shareholder asked about his retirement plans.  Eamon Gallagher

This comes after a record June quarter, underpinned by spending from consumers flush with cash from JobKeeper subsidies, superannuation withdrawals and international travel refunds.

Mr Murray told The Australian Financial Review that Australia's largest consumer electronics retailer had come off a very strong trading period but it was unlikely to be repeated.

"We are excited by customers getting back into store in Melbourne," he said.

"With Australians holidaying at home this year, and the money spent overseas normally, while we don't necessarily expect the numbers over the last six months to continue in perpetuity, we are reasonably confident as we head into Christmas."

Closed stores in Victoria

Investors had sold the stock down 6.7 per cent to $47.12 shortly befoe the close of trading.

JB Hi-Fi was forced to close 67 stores in Victoria when stage four lockdown restrictions came into force on August 6. But it has been using shops as "dark stores" to fulfil online orders, which boomed as locked-down consumers upgraded TVs, computers and appliances.

Mr Murray said despite store closures in Melbourne, he was happy with the near 28 per cent jump in same store sales growth at JB Hi-Fi.

All stores in metro Melbourne threw open their doors to customers on Wednesday after the Victorian government finally relaxed stay-at-home rules.

Sales in New Zealand did not fare as well, falling 2.5 per cent in the first quarter, compared with 3.8 per cent growth a year ago. However, the first-quarter result was an improvement on the prior quarter when revenue fell 5.7 per cent after being hit by the store closures.

Mr Murray said the company's online businesses had continued to scale and meet the needs of its customers. He skipped sales guidance for the full year due to uncertainty arising from COVID-19.

Mr Murray told the Financial Review he has no plans of stepping down from the top job any time soon, after a shareholder asked about his retirement plans.

"I love what I do. I'm 44 years old. I'm really proud of what we have achieved in the last six years and look forward to many years to come," he said.

Protest vote

Stephen Goddard, who chaired the AGM for the first time, told investors the board remained focused on building long-term shareholder value.

He noted that since its ASX listing in October 2003, JB Hi-Fi shares had achieved compound annual growth of 21.9 per cent – more than six times the 3.7 per cent growth in the ASX 200 Accumulation Index over the same period.

Earnings per share have grown at a compound annual rate of 21.2 per cent and the dividend per share compound annual growth has been 22.7 per cent.

Former Big W executive Melanie Wilson, who was elected to the board for the first time, said she would buy shares in JB Hi-Fi this year.

Fellow director, Beth Laughton, was re-elected. The remuneration report was passed without issue, but investors made a strong protest vote against the granting of restricted shares to Mr Murray, with 20.38 per cent of votes cast against the item.

Mr Goddard said one of the proxy advisory firms had recommended against voting in favour of the granting of shares, but had backed the pay report.

29 Oct, 2020
Heat mapping and digital queues: Malls' plan to fight virus as shops reopen
The Sydney Morning Herald

The owner of Australia’s largest shopping centre Chadstone, which was at the centre of a devastating COVID-19 outbreak, is introducing pandemic-busting technology such as heat mapping and digital shopping queues at 20 of its Melbourne malls as retailers reopen on Wednesday.

Vicinity Centres, the country’s second-largest retail landlord, says the technology will help counter potential outbreaks after a butcher's shop in the group's Chadstone mall infected dozens of people and seeded a COVID-19 cluster earlier this month that spread beyond the city to Kilmore and Shepparton.

"Safety remains our top priority and we’ve been working hard, alongside our retailers, to get our Melbourne centres ready for the reopening of retail with thorough COVID-safe plans in place utilising new technologies," Vicinity chief executive Grant Kelley said.

The $6.3 billion ASX listed landlord will use real-time heat-mapping technology to monitor what's happening in the malls so it can quickly respond to congested areas and send teams to keep customers moving.

As well, its new digital queueing system called SocialQ will help retailers safely manage shoppers' movements and reduce capacity and congestion in stores. The recently developed software allows customers to pre-book their shop and virtually queue through the use of QR codes on their mobile phones.

The tech was designed by Melburnian Dean Cherny, who owns in-store music supply company Marketing Melodies. Mr Cherny made the software through Australia's first lockdown in April and has had huge success rolling out the product in Victoria.

"At the moment it's going gangbusters," he said. "We're trying to get literally hundreds of retailers signed up by tomorrow."

The software manages online bookings and virtual queues for walk-up customers, with a goal of reducing crowds of shoppers lining up outside stores. If a store is too busy, shoppers can choose to virtually reserve a spot in line and come back later.

SocialQ has signed up prominent retailers and shopping centre owners, including Vicinity, GPT, JB Hi-Fi, Kmart, Target, Country Road, Cotton On and Just Group. More sign-ons, including from major mall owner Westfield, are expected in the coming weeks.

Mr Cherny is hoping the app will become a major boon for retailers managing crowds through the Christmas rush, with the company also supporting contact tracing if outbreaks occur.

Mr Kelley said Vicinity was also rolling out interactive, real-time data showing visitor numbers and forecasts for any given day and the week ahead. The feature, updated every 15 minutes across its malls, will help customers plan when and where they shop before they leave home.

“This feature makes it easy to avoid the usual busy periods, such as the middle of the day, and on weekends, and will save time for the most convenient shopping experience,” he said.

Melbourne’s large shopping centres are emerging from the long coronavirus lockdown battered and bruised.

The crisis wiped up to $1.8 billion from the value of Vicinity’s malls as it gutted foot traffic and forced multiple stores to close, putting pressure on rental income from tenants.

Vicinity, which manages and part-owns multiple top-tier malls such as The Glen in Melbourne’s east and Sydney’s The Strand Arcade, plans to station COVID safety officers at entrances to remind visitors to use hand sanitiser on arrival, wear a mask, encourage everyone to practise social distancing and direct traffic flow.

Mr Kelley said the new measures were in addition to a rigorous cleaning and sanitisation program.

Contactless parcel concierge (click and collect) was now available at nine centres across Melbourne, including Altona Gate, Bayside, Broadmeadows Central, Chadstone, DFO South Wharf, DFO Essendon, Uni Hill Factory Outlet, Northland and The Glen, he said.

29 Oct, 2020
Super Retail flags multimillion online investment as sales skyrocket
SOURCE:
The Age
The Age

Super Retail Group is pumping more money into beefing up its online capabilities as the retailing collective prepares to better tackle the rising tide of digital-only sales.

In a trading update ahead of its annual general meeting on Wednesday, Super Retail said online sales had grown 132 per cent across its four brands for the first quarter of the 2021 financial year. Super Retail operates Supercheap Auto, Rebel Sport, BCF and Macpac.

As a result, the company told investors it now expects its capital expenditure for the year to be $100 million, with much of it focused on increasing online capabilities.

"The dynamic growth we have seen in our digital sales, through both click & collect and home delivery, has reinforced our conviction in our omni-retail business strategy," chief executive Anthony Heraghty said.

"We will continue to reinvest in the business to enhance our digital capability and increase our market share."

Super Retail’s shares ended Wednesday's session 4.8 per cent higher at $11.69 following the update.

Online retail has boomed amid the COVID-19 pandemic. Digital sales at each of Super Retail's brands have more than doubled since the end of June.

Total sales, which include in-store, rose 25 per cent across the group for the same period despite 94 stores being closed through Melbourne’s second lockdown. Sales were positive across all brands bar Macpac, which fell 2 per cent due to being "heavily impacted" by the lockdown.

While the company did not provide any update on its earnings, Mr Heraghty said a 2 per cent jump in gross margins, thanks to a reduction in discounting, had boosted Super Retail's bottom line.

"Our considered approach to promotional activity in response to strong levels of consumer demand - to help manage inventory in the leadup to Christmas and optimise gross margin - and the substantial fixed component of our cost base means that revenue growth has flowed meaningfully through to the bottom line," he said.

Despite the bullish trading update, the company only narrowly avoided a 'first strike' against its remuneration report at Wednesday's AGM. A total of 17.18 per cent of investors voted against the report, just shy of the 25 per cent required.

Proxy firm ISS had advised its clients to vote against the report due to excessive short-term bonuses it awarded to Mr Heraghty, especially considering Super Retail's $6.5 million claimed in JobKeeper. It also took issue with the lack of specific hurdles required for the awarding of bonuses.

Investors also protested the awarding of 239,440 performance rights to Mr Heraghty, with 20.9 per cent voting against the proposal. ISS labelled the grant as "discretionary and less-than-rigorous" and questioned its grant price of just $7.19.

26 Oct, 2020
Temple & Webster quarterly profit more than previous full-year figure
Financial Review

Online retailer Temple & Webster made more profit in the September quarter than it did in the entire year ended June 30 amid a boom in furniture and homewares spending.

Temple & Webster earned $8.6 million before interest, tax, depreciation and amortisation in the three months ending September, compared with $8.5 million in fiscal 2020, chief executive Mark Coulter told shareholders at the annual meeting on Wednesday.

Sales in the year to date (July to October 19) have risen 138 per cent, year on year, after soaring 130 per cent in the June quarter, and October sales were more than double when compared with last year's figure.

The sales growth exceeded analysts' forecasts, but Temple & Webster shares fell 17 per cent to $11.62 as investors took profits. The shares have risen five-fold this year, from $2.68 to a record $14.03 on Tuesday, lifting the company's market value to $1.68 billion.

Some investors have also been rattled by heavy share sales by Mr Coulter, fellow co-founder and director Conrad Yui and chairman Stephen Heath.

Mr Heath sold 150,00 shares – 81.5 per cent of his holdings – for $1.4 million in an on-market trade in August, but shareholders were not told about the sale for more than five-and-a-half weeks. Mr Coulter sold 2.1 million shares in August, and the ArdenPoint Ecommerce Trust – owned by Mr Coulter and Mr Yui – sold 500,000 shares.

We believe that online shopping habits are being formed right now ... those habits will remain.

— Mark Coulter, Temple & Webster CEO

Temple & Webster's extraordinary sales and earnings growth highlights the shift to online shopping and the cocooning trend triggered by the coronavirus pandemic.

Consumers stuck at home are spending on new sofas and dining suites, carpets, kitchenware, lighting and manchester, parting with money they might otherwise have spent on overseas travel.

Harvey Norman, Nick Scali, JB Hi-Fi and Beacon Lighting have also reported strong sales growth in the June and September quarters, but growth at bricks and mortar stores has paled in comparison with that at pure-play online retailers such as Temple & Webster.

The company is taking advantage of the structural shift to e-commerce by adopting a high growth strategy, investing in areas such as technology and data, brand awareness and private label products to increase its market share.

According to the NAB online sales index, the online furniture and homewares category grew about 57 per cent during the pandemic (April to July); Temple & Webster's sales grew about 150 per cent.

"Even though the world is in uncertain times, we remain committed to our longer-term strategy of investing to ensure Temple & Webster is the brand for the next generation of furniture shoppers," Mr Coulter said.

"We want Temple & Webster to be the first place Australians turn to when shopping for their homes and workspaces. We believe that online shopping habits are being formed right now, and provided we keep putting the customer at the heart of everything we do, those habits will remain."

Flush with almost $80 million in cash after raising $40 million in new capital in July, the company is eyeing bolt-on acquisitions and partnerships after taking a stake in an offshore interior design start-up.

Mr Coulter also wants to invest more in technology, harnessing AI to enable the retailer to make personal recommendations based on customers' past shopping habits and to build an online catalogue of 3D products to help customers envisage products in their homes.

RBC Capital Markets analyst Tim Piper said the trading update implied Temple & Webster was tracking ahead of his full-year forecasts for 71 per cent sales growth and EBITDA of $22.3 million.

"As the market leader in online-based furniture and homewares in Australia, TPW has benefited from the accelerating shift to online and we expect the step-up in penetration to remain in a sizeable proportion," he said.

"We think TPW can also continue to grow market share (as well as expand into new adjacencies), which should compound the growth expected in the underlying market," he said.

RBC has an outperform rating and share price target of $12.

21 Oct, 2020
Payday for Wolverine as Andrew Forrest acquires RM Williams
The Sydney Morning Herald

Mining magnate Andrew Forrest has brought iconic boot brand RM Williams back to Australian shores after a $190 million acquisition that will see Hollywood superstar Hugh Jackman pocket $10 million.

The news, which had been heavily foreshadowed in recent weeks, was announced by Dr Forrest's investment fund Tattarang on Monday, with the Fortescue founder and multibillionaire saying he and his wife, Nicola, were "incredibly proud and humbled" to now own the brand.

"It always rankled a bit that this great Australian, Reginald Murray Williams, kicked off this fantastic organisation, employed so many people, and then it had to go to overseas hands," he said.

"I'm so glad it's now back, and I'd have to say the [Forrest] family has a big solid lump in its throat about returning RM Williams back to Australia."

RM Williams had been up for sale since May last year after its parent company, Louis Vuitton-partnered private equity firm L Catterton, began seeking buyers for the business at a $400 million to $500 million asking price.

Andrew ‘Twiggy’ Forrest and his wife Nicole have bought out iconic Australian brand R.M. Williams from an offshore company.

Various parties from around the world had expressed interest in the brand, but Dr Forrest's Tattarang emerged as the winning bidder after TPG Capital pulled out earlier this month.

It's understood Tattarang paid about $190 million for RM Williams, far below L Catterton's original asking price but still above the $110 million it paid for the business in 2014. RM Williams reported profits of $23 million in 2019, and the acquisition values the company at about 9x earnings.

Tattarang has bought 100 per cent of the business, buying out minority shareholders such as Jackman, who owned about 5 per cent of the business and will receive about $10 million from the sale. Jackman will remain an ambassador for the brand, as he has been since 2015.

RM Williams chief executive Raju Vuppalapati said he was proud of the progress L Catterton had made in expanding the brand since acquiring it six years ago and he was hoping to continue that growth under Dr Forrest's stewardship.

"The RM Williams team and I look forward to Andrew and Nicola's stewardship as we enter the next exciting phase of surprising and delighting our consumers with hand-crafted products made in Australia," he said.

Since L Catterton's purchase in 2014, much of the focus of RM Williams' growth has been on the international and youth market, with the business coining a target demographic of "boot boys and boot girls": younger, fashion-savvy Australians keen on longer-lasting products.

This has drawn the ire of some boot traditionalists, who believe the company has diverged from its quality-focused roots and has reduced the durability of its famed work boots.

However, while Tattarang's focus will remain on growing the brand in those markets, it has pledged to continue making the boots in Australia. It will also look to increase the company's online presence given the digital boom brought on by COVID-19.

The pick-up will also help Dr Forrest's investment vehicle build its portfolio outside of the metals, energy and agriculture sectors where the majority of its investments now lie, with the fund looking to continue to grow its "lifestyle" segment.

21 Oct, 2020
H&M is now in every Australian household
SOURCE:
Ragtrader
Ragtrader

H&M has today launched its Australian website, after announcing the venture in January this year.

From today, Australian customers will be able to shop the H&M range across women's, men's and kids' clothing, footwear and accessories.

Launching with a focus on sustainability and transparency, customers will be able to easily find the origin of a product, the countries it was produced in and the suppliers and factories where it was made on the website.

H&M Australia country manager Thomas Coellner said the business is thrilled to expand its omni-channel offering.

"We are very excited to finally launch H&M online in Australia and to be able to offer our fashion collections to customers nationwide anytime, anywhere.

"We now have 40 stores across the country and this significant milestone extends H&M’s omni-channel offering," he said.

For the first time globally, H&M's Australian website is launching online at the same time as its loyalty program, H&M Member.

To celebrate, customers will receive a discount off their first purchase when joining the program and will be able to access personalised discounts, invitations to exclusive events, free shipping with purchases over $60 and free returns for all online orders.

Members will also receive a digital membership card in the H&M mobile app which will allow them to pay using buy now pay later solution, Klarna.

20 Oct, 2020
David Jones appoints Country Road boss as new CEO
The Sydney Morning Herald

The parent company of David Jones has appointed Country Road Group chief executive Scott Fyfe to head up the struggling department store after a recruitment process that was delayed by COVID-19.

South African retail conglomerate Woolworths Holdings announced on Monday afternoon that Mr Fyfe would take over from interim chief executive Ian Moir, who will leave the business at the end of November.

The 46-year-old Mr Fyfe has been the head of Country Road Group, which includes brands such as Country Road, Politix, Mimco and Trenery, for four years and prior to that had a 20-year career at major British retailer Marks & Spencer.

The appointment was significantly delayed because of the COVID-19 pandemic, with Woolworths Holdings starting the recruitment process in January after former Levi's boss Roy Bagattini replaced Mr Moir as chief executive of the South African company.

His tenure was marred by an ill-fated decision to purchase David Jones for $2.1 billion in 2014, a price he later admitted was too much. Today, David Jones is worth less than half that amount after a number of write-downs and a run of profit declines.

In September, Mr Bagattini said the upmarket department store would accelerate plans to close some of its 40-odd stores after it plunged to a $33 million loss on the back of the COVID-19 pandemic.

Mr Fyfe said he still believed David Jones was one of Australia's "most iconic retail brands" and noted his focus would be on the changing nature of customers. Mr Fyfe was responsible for driving much of Country Road Group's online growth, something Woolworths is hoping he can replicate at the languishing David Jones.

"At CRG he has delivered market-leading online growth while optimising and repurposing store footprint," Mr Bagattini said.

"We look forward to Scott’s contribution and the application of his skills and expertise as we accelerate the turnaround of the David Jones business."

A recruitment process for a new CRG chief executive is underway, the company said. In the meantime, Country Road's managing director Elle Roseby and Witchery and Trenery's managing director Simon Schofield will jointly run the business.

David Jones chose to trade through the initial COVID-19 lockdowns in March and April, despite many of its retail rivals closing their doors, meaning it has not been as badly hit as other major department stores such as Myer.

20 Oct, 2020
'A bit bewildered': Relief and disappointment as retailers mull November reopening
SOURCE:
The Age
The Age

Victorian retailers have expressed a mixture of relief and disappointment over the state government's easing of restrictions, with many questioning why stores are not able to reopen sooner.

With low case numbers and a 14-day average, here's what Victorians can do from 11.59pm, Sunday 18 October.

On Sunday, Premier Daniel Andrews announced that retailers could open their doors with COVID-19 precautions in place from November 2, though this date might be brought forward if case numbers remained low.

Mike Schneider, the chief executive of $15 billion hardware retailer Bunnings, said while he welcomed the clarity provided by the government, he was disappointed larger format stores were unable to open.

"We’re disappointed that the different risk profiles in the retail sector have not been recognised, particularly standalone large format retail with outdoor adjacencies and stringent COVID-safe measures," he said.

"Reopening retail is vitally important to rebuilding the Victorian economy and to restoring a sense of normality to people’s lives."

Office supply company Officeworks, which is also owned by Bunning's parent company Wesfarmers, was similarly displeased. Managing director Sarah Hunter said the announcement was disappointing given the low case numbers in metropolitan Melbourne.

Ms Hunter added she was hopeful the sector might be able to reopen sooner than November 1, but noted the ongoing lockdown and further delay to resuming trading would have an outsized effect on smaller retailers that Officeworks relied on as both suppliers and customers.

"We are becoming increasingly concerned for our small and medium business customers who have borne much of the economic hardship of the lockdowns and as we move closer to Christmas, the extension of restrictions is likely to impact this group the most," she said.

Large retailers such as Bunnings and Officeworks have been lobbying the state government to be able to reopen for weeks, pointing to supermarkets as an example of the low virus risk in bigger retail spaces.

Small retailers were also lukewarm on the Premier's announcements. Caleb Brown, who heads up major retailing group Brand Collective, told The Age while he was broadly pleased about the plans, he questioned why the sector had to remain shut for a further two weeks.

"We remain a bit bewildered as to why we've been closed for so long, and why we continue to be closed until the first of November," he said.

"It beggars belief that you can purchase a pack of smokes but not a pair of school shoes under the current public health directions."

Mr Brown's company, which operates brands such as Superdry, Clarks and Volley, has had more than 35 stores shut in Melbourne through the lockdown. He's hopeful the government will be able to stay the course and prevent any further outbreaks, noting Christmas in the state would have to be "cancelled" if retailers were unable to open through November and December.

If the November 2 date goes ahead, retailers will be set to open for the Christmas season, which unofficially kicks off on Cup Day. Being able to prepare for the season, which is far and away the most important sales period for retailers, is an "enormous relief", according to Australian Retailers Association chief Paul Zahra.

"We're grateful to have a date, and I think Christmas will still be on, but just by the skin of its teeth," he said.

The industry body is now urgently calling on the government to provide clarity on what safety protocols retailers will be required to meet when it comes to reopening, saying requirements such as scanning QR codes on entry may be difficult to meet for larger retailers such as Myer.

But despite Mr Zahra's positivity, the former David Jones chief was not confident in the state government holding the line on the mooted reopening date, noting the year had been one of many "delays and disappointments".

"However, in saying that, we've got to remain positive and trusting," he said. "But if that trust is dashed for the second time, then once bitten, twice shy."

CBD outlook still poor

While a November reopening would give small retailers plenty of time to benefit from the Christmas rush, it will be of little help to retailers located in and around the Melbourne CBD.

Stores such as upmarket fashion retailer Harrolds are expecting to see a small percentage of the customers they usually would over the festive season. Managing director and Melbourne City Council candidate Mary Poulakis said CBD retailers would be "decimated" until workers were able to head back into the office.

"[Daniel Andrews] could say open tomorrow, but it would make no difference," she said. "Everyone will be jumping up and down and champing at the bit to make the tills ring, but until he says 'go back to work', the CBD is decimated."

Ms Poulakis said the November 2 reopening date was sooner than she had expected and was looking forward to "getting open and staying open" after two more weeks of "purgatory".

But once stores reopen, a flurry of consumers racing back into shops could put a strain on the sector, warns Bunnings boss Mr Schneider.

"We do still have genuine concerns for both our team members and the community that the re-opening of retail on a single day will see large numbers due to built-up demand," he said.

"Particularly in the lead up to Christmas, we believe this will significantly increase anxiety and risk for customers and retail employees."

Mr Brown said he expected there would be a rush of customers once stores reopened, especially those looking to return online orders received during lockdown, however, he welcomed from a sales perspective.

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