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Technical issues with a new e-commerce site Baby Bunting launched last year, which impacted sales and forced the retailer to roll back to its old website in November, dominated a call with investors about the company’s first-half results on Friday.

Chief executive Matt Spencer said the retailer was working closely with the vendor to resolve a problem with the way promotions appeared on the checkout page, but could not say when the new site would be back up and running.

The relaunch is further complicated by the fact that there are only a few times throughout the year when retailers like to execute such projects, so they cause minimal disruption to online shoppers. Baby Bunting won’t make the first window, which is in March. The next window is in July, a full year after Baby Bunting originally launched the new website.

Spencer did not mince his words when talking about the debacle.

“The launch of the new website has been disappointing. It’s been a distraction to the business, and it has impacted sales performance,” he said on the call on Friday.

The website problems also created an influx in customer support requests, which led to an additional cost of several hundred thousand dollars in the customer care centre in the first half, according to Spencer.

After rolling back to the old website in November, Baby Bunting’s online sales growth recovered, from 7 per cent year on year in the four weeks prior to the rollback, to 21 per cent year on in the four weeks after the rollback, which included Black Friday.

Visits to the website were up 13 per cent in the half, compared to the previous corresponding period, and online, which includes click and collect, accounted for 11.7 per cent of total sales, up 10.5 per cent on the previous corresponding period.

The technical issues struck a sour note in an otherwise positive first half, in which Baby Bunting lifted total sales, opened new stores and eked out an increase in comparable store sales, despite the addition of several new stores, which cannibalised sales in some existing stores, and the challenges presented by the bushfires and weaker December trading period.

“Our results for the first half reflect continuing profitability, growth and significant progress on a number of our operational objectives for the year,” Spencer said in a statement to the ASX.

Retailing veteran and Premier Investments founder Solomon Lew has enjoyed a multimillion-dollar windfall from the success of appliance manufacturer and distributor Breville following the company's better-than-expected half-year result on Thursday.

Breville shares soared to close up 27.6 per cent at $25.50 after it reported a surge in first-half revenue and sales and noted it had fended off the impact of the coronavirus outbreak.

Mr Lew personally holds about 5 per cent of Breville, and Premier Investments holds a 27.4 per cent stake. Combined, the stake is now worth over $1 billion following Breville's share price rally.

This marks a single-day increase of $233 million for Premier and Mr Lew's Breville holdings and a massive 1600 per cent increase in value on the investor's estimated entry price of $1.50 a share.

Breville told investors on Thursday revenue had grown 25.4 per cent to $552 million, beating consensus estimates by $40 million. Net profit after tax also grew, up 14 per cent to $49.6 million, slightly offset by a 1.2 per cent drop in margins due to the weak Australian dollar.

The company was also bullish on the coronavirus outbreak, flagging an end to manufacturing delays in China, with factories in the country starting to come back online following an extended closure.

While this would still see a slow ramp-up to normal production levels, Breville said its inventory levels for the first months of the new year were high enough to deal with such a slowdown, largely due to the company already holding excess stock as a hedge against Brexit and the New Year holiday.

Breville does the majority of its trade in North America, but following the US-China trade war, the company began to focus expansion on other markets such as the UK and Europe.

Chief executive Jim Clayton said the first half was a solid result for the group, but added he remained "mindful" of the global political and economic environment.

"We had good growth across all regions and categories and continued to deliver double-digit EBIT growth. Successful European expansion continued, diversifying our global footprint and adding growth and resilience to the portfolio," he said.

The company said its earnings before interest and tax for the full year would sit around $110 million, a 13 per cent increase on 2019. It also boosted its dividend 10.8 per cent to 20.5 cents per share, payable on March 18.

Breville has been a quiet achiever in Australia's retail landscape in recent times, consistently posting strong results and continuing to launch new products, including the 'Bluicer', a combination juicer-blender.

Its share price has swelled by more than 144 per cent since the start of 2019, and five years ago its shares were trading at around $7.

It's one of Premier's better investments, with the company's 10.8 per cent stake in department store Myer dropping in value by over 60 per cent since its purchase in 2017. Premier shares closed up 2.40 per cent to $20.93 today in early trade.

Elon Musk's Space Exploration Technologies plans to spin out its budding space internet system Starlink and pursue an initial public offering.

SpaceX has already launched more than 240 satellites to build out Starlink, which will start delivering internet services to customers from space this summer, president Gwynne Shotwell said on Thursday at a private investor event hosted by JPMorgan Chase in Miami.

"Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public," said Shotwell, SpaceX's chief operating officer. "That particular piece is an element of the business that we are likely to spin out and go public."

Founded in 2002, SpaceX has grown to dominate the commercial rocket industry through its work flying satellites into orbit for customers including the US military, as well as carrying cargo to the International Space Station. It is aiming to start flying people, as well, both for NASA and high-paying tourists.

But the rocket launch business remains competitive and tough. Starlink and its ability to provide high-speed internet across the globe has helped private investors justify a roughly $US33 billion ($49 billion) valuation of the closely-held company. Musk has long maintained that SpaceX itself is unlikely to go public until it is regularly ferrying people to Mars.

SpaceX is one of a handful of companies that want to build out a space internet system serving people who struggle to access the web today via fibre optic and cellular connections. Starlink would beam down relatively high-speed data from its network of satellites orbiting the Earth.

Right now, SpaceX can only cover higher latitudes, but by the end of the year, it expects to have global coverage, Shotwell said at the conference. Such a service would, in effect, turn SpaceX into a telecommunications company that also has a rocket business.

"This is going to turn SpaceX into a company that is providing service to consumers, which we are excited about," Shotwell said. The company has been launching roughly 60 satellites at a time into orbit, and with another four launches expects to have global coverage. Shotwell said that service will be "less than what you are paying now for about five to 10 times the speed you are getting".

An IPO likely would be welcomed by some SpaceX employees and investors. Musk has been reluctant to force SpaceX to endure the scrutiny that comes with being a public company and to reveal the details of SpaceX's financials. This has left employees sitting on valuable stock, which they're typically only able to sell during a limited number of private transactions. An IPO for Starlink might also allow its longtime backers to register gains on their high-risk investment.

There have been attempts to build similar space internet services in the past, and no company has figured out how to turn such a system into a huge, global business. Starlink dwarfs all these previous attempts in terms of the size and scope of its ambition.

Over the coming years, SpaceX intends to place thousands of satellites into orbit and will increase the bandwidth of its service with each launch. Exactly how many people will be willing to pay for this service remains an open question.

Outdoors apparel retailer Kathmandu has booked a strong first-half contribution from its recently acquired Rip Curl surfing business as bushfires and unusually hot weather led to a weak Christmas period for the company.

In a trading update on Friday, the ASX-listed company told investors its underlying half-year earnings before interest and tax (EBIT) for the 26 weeks to January 31 had risen 40 per cent on the same half last year, largely fuelled by its $350 million acquisition of Rip Curl.

This will take the company's underlying EBIT, which excludes one-off acquisition charges, to around $NZ27.7 million ($26.5 million), just shy of analyst expectations of $NZ29 million.

Same-store sales for the company's Kathmandu stores grew 1.5 per cent, a marked improvement on the flat growth recorded in the first half of the 2019 financial year. Its performance was helped by a 30 per cent uptick in online sales for the period.

Rip Curl, which the company acquired in October, improved its total sales by 2.7 per cent for its first three months under new ownership, and same-store direct-to-consumer sales grew 2.6 per cent.

The company's 118 Australian and New Zealand stores, which account for around one-quarter of Rip Curl's total revenue, booked a sales jump of 8.3 per cent over the hot summer.

Hiking boots brand Oboz also performed strongly for the half, with sales up 10 per cent.

Kathmandu shares soared following the result, closing up 17.6 per cent at $3.54

Kathmandu chief executive officer Xavier Simonet said the company had seen a shift in spend away from the Christmas period towards the Black Friday sales, which contributed to lower than usual December foot traffic.

"The Christmas trading period has seen a further shift towards Black Friday and Boxing Day events. Low December market foot traffic between these two events, unusually hot weather, and bushfires in Australia, have combined to moderate first-half sales," he said.

"We have responded to these challenging Australian conditions by focusing on operational execution, and we are pleased to have achieved same-store sales growth for the first half."

Mr Simonet said the company was monitoring the coronavirus outbreak, noting Kathmandu sourced its products from a diverse range of suppliers and that it takes longer to turnover. Consumer confidence has so far not been affected by the virus, he said.

"[Kathmandu] has mitigation plans in place if there is a prolonged disruption to our Chinese suppliers," he said.

Kathmandu investors and analysts gathered on Friday for an investor briefing in the surf town of Torquay in Victoria, where they were presented with a pitch outlining the long-term synergies and benefits of the acquisition.

Part of this pitch involved a focus on Rip Curl's technical product sales, which account for 40 per cent of revenue and focuses on products such as wetsuits, boards, and high-tech watches.

Despite the sales uptick, Morgan Stanley analysts remained concerned about the business' inherent seasonality, saying if Rip Curl's sales are overly skewed towards the hotter first half of the financial year, Kathmandu could be left picking up the slack.

This was a "key issue" for analysts, who remained underweight on the stock and said it would need 12 per cent growth in second-half EBIT to meet expectations.

Booktopia founder Tony Nash is bullish on investment despite weak conditions in the retail sector after closing an equity deal that will pour $20 million of new capital into the business.

Bringing an end to a long search for funds, Nash on Thursday announced a consortium of private investors have tipped in to the online bookseller, led by Champ Ventures co-founder Su-Ming Wong and JBS Investment founder John Sampson.

It comes less than a week after Booktopia bought collapsed Co-op Bookshop out of the retail bargain bin, although Nash said these events are unrelated.

The money will be used to chase Big W’s spot as Australia’s largest book retailer, which Nash is confident the business will accomplish before year’s end as the Woolworths-owned department store closes sites across the country.

“In the past, we’ve had to sell the books to create the money to invest. Now we don’t have to do that,” Nash told SmartCompany.

“We can execute on all our plans.” 

Booktopia plans to double its inbound and outbound capacity from 30,000 individual books per day to 60,000, and will also invest in expanding the capacity of its 13,000sqm Sydney warehouse to keep up with growing demand for popular titles.

Nash said he’s not worried about investing at a time of downturn for Australia’s retail industry.

“My recommendation is everyone start investing,” Nash said.

“If you invest now when things are tougher then you are in a strong position to catch the prevailing headwind.

“Then when things pick up, you’re miles ahead of the competition.”

While Nash did not disclose how much of the company he signed away, the entrepreneur did confirm founding shareholders will retain a majority stake in the business.

Booktopia booked $131 million in revenue for the financial year 2019, and Nash said the business was expected to grow to $175 million in the 2020 calendar year.

In an interesting coincidence, the announcement comes as Booktopia celebrates its 16th birthday.

Under the deal, which also included a portion of long-term debt, Wong will join Booktopia’s board, which is additional advice Nash welcomes.

“You can get dumb money, and you can get smart money,” Nash said.

“By getting someone smart to invest, you can sit down and talk strategy. We’ve got people inside the tent rather than consultants.

“We’ve always wanted to have someone who can add value around the boardroom table.”

Nash’s journey trying to raise capital for the Booktopia business has been long and tumultuous. In late-2018, the founder embarked on an ambitious $10 million equity crowdfunding strategy, but finished well short of his target after some scrutiny from corporate regulator ASIC.

By combining a shaggy rug offcut and a wire storage basket, Samantha Slater has fashioned herself a brand new ottoman.

Promptly, her 64,000 Instagram followers sound off in the comments. "So clever! I have to try this at home," writes one.

"Love this one, the easy hacks are always my favourite," enthuses another devoted fan.

Surprisingly, the two aren't talking about infiltrating computer systems. Instead, this is the world of Kmart hacks, where shoppers from across the country – largely mums and Millennials – share their creative stylings and DIY takes on products from the discount department store.

In the past five years, hundreds of similar Facebook groups and Instagram pages have sprung up across the internet, many with membership numbers that would rival some large country towns.

Some focus on the hacks, some review products, and others share design inspiration. But all have the same caveat: thou must love Kmart.

These swathes of devoted customers mark a significant change in fortune for the once-troubled Kmart, which less than 10 years ago was struggling to differentiate itself from its competitors, including its more profitable stablemate Target.

In 2010, the company's earnings were just under $200 million and parent company Wesfarmers was looking at ways to grow topline sales. It had embarked on a new 'Expect Change' campaign, desperately trying to convince shoppers the low-end retailer had changed its stripes.

This was under the leadership of turnaround king Guy Russo, who eventually succeeded in flipping the script for the discount retailer, focusing on lowering prices, simplifying product ranges, and bringing in more on-trend pieces.

Within just four years Kmart's sales and earnings far outstripped Target's, and the department store has continued to shine even in recent years when weak confidence and low spending has seen other retailers suffer.

With Kmart's successful reinvention came a notable change in how the business sold itself to customers. Splashy catalogues with weekly specials were replaced with images of chic home settings, coupled with a greater focus on social media and TV advertising.

"If you think back a few years, in the discount department store space it was very catalogue-driven, almost all the communications were based on your catalogue," Laurie Lai, Kmart's general manager of marketing told The Sydney Morning Herald and The Age.

"We know our customers were moving on to digital, social media, watching online TV, all those things. So we went that way too."

The business also moved away from focusing just on low prices, pivoting instead towards "value" – giving customers the absolute best bang for their buck, rather than having them spend as few bucks as possible.

At the heart of this strategy are the products themselves. Walking through a Kmart store can feel like a scene from a Wes Anderson movie, with simple wood and pastel tones a dominating feature.

The eternal popularity of these ranges – some sell out within hours of launching – are a testament to the company's 50 person-plus buying and design team, who work with 9 to 12-month lead times to cook up the new products, often taking inspiration from international designers.

However, some local designers have accused the retail giant of poaching and reproducing their own designs, a claim the company rejects, saying instead it looks to global trends for its inspiration.

"We actually get the international trends that all retailers use, right off the catwalk," Julie Miller Sensini, Kmart's general manager of apparel and design says.

"And then we distil those down into what we know our customers like and dislike."

That's aided by collaboration with pages like Slater's (who is otherwise known as the Kmart Hack Queen). She says the Kmart team regularly take feedback from her and her followers, including flying her to special sneak-preview events of new ranges, and providing them with the occasional free product.

"They take our feedback and they're always looking at what questions we get, and what answers people give," she says. "I think they're just really grateful we're putting so much time in."

And while it might look to some like Kmart is pulling the strings behind these massive fan groups, Lai stresses they are entirely organic, but notes Kmart's team draws "a lot of inspiration" from the innovative fans.

The 'cool mum' of department stores

Intentionally or not, Kmart has succeeded in becoming the envy of every low-end department store in the country that has struggled to shake some of the 'cheap and nasty' stigma associated with the segment.

Jana Bowden, associate professor in marketing at Macquarie University, believes Kmart has succeeded over competitors  like Target and Big W by eradicating that stigma, turning the potentially embarrassing experience of shopping at a discount retailer into something shoppers want to share.

"Instead of being embarrassed by the experience they take pride in going discount shopping, buying something on a tight budget, and showing other consumers how they've managed to succeed with that tight budget," she says.

"They've fostered a real pride in being thrifty."

But with the retail sector currently taking a beating, and fellow discounters Big W and Target shutting stores, Bowden questions if Kmart's fortunes can last.

"There are questions about the longevity of their strategy," she says. "Kmart is going to have to keep reinventing the wheel to make its campaign look innovative and keep drawing consumers in.

"That may have a limited lifespan if the economic conditions become more severe in the retail market."

The latest JB Hi-Fi financial results cement the reputation of chief executive Richard Murray as one of the country's best retailers over the past decade.

Murray has reached the pinnacle of the cut-throat retail industry against a background of persistent attacks by short sellers, the arrival in Australia of Amazon and the collapse or slow disintegration of many other retailers.

As well as keeping the JB Hi-Fi earnings machine on song, Murray was able to seamlessly integrate the Good Guys into the larger business following its $870 million purchase three years ago.

On just about any measure Murray stands out. JB Hi-Fi stock has performed better than just about any other retailer and easily outpaced the performance of the S&P/ASX 200.

This outperformance has been helped by the market's reassessment of what is a reasonable amount to pay for JB Hi-Fi's earnings. The price earnings multiple for the stock has doubled over the past two years to 20.

Sales per square metre are higher than every other Australian retailer and comparable to the best retailers in the world. At 15 per cent the company's cost of doing business is one of the lowest in Australia and lower than a half a dozen global companies in its peer group.

Two key things keep helping the company deliver better than expected results – value for money and excellent customer service.

JB Hi-Fi shares surged on Monday after Murray upgraded profit for the full year to June on the back of consensus-beating results for the half year to December 31.

At midday, JB Hi-Fi's shares were up 10.2 per cent at a record high of $44.20 – the shares have more than doubled in the past 13 months.

Sales and profits were higher than expected and the January sales numbers underpinned a profit upgrade for the full year.

During a call with analysts on Monday, Murray went through the company's five key competitive advantages but the most interesting aspect of this was the fact the slide in the presentation pack left out the two key things that keep helping the company deliver better than expected results – value for money and excellent customer service.

Murray later highlighted these two issues and the extraordinary lengths the company goes to in order to ensure its electronics products are price competitive.

The company's partnerships with large suppliers have proven to be a sound strategy. For example, it is one of the biggest resellers of Apple products and its rollout of telco services in partnership with Telstra has driven higher sales and foot traffic.

Murry said he was "blown away" by the results in telco in the Good Guys during the half year.

Murray said he sees plenty of opportunities to improve the productivity of JB Hi-Fi's 300-strong store network, including improved supply chain management. One aspect of the strategy that has worked well is capital investment, which is running at about $50 million to $60 million a year.

The company is constantly reassessing the performance of stores. It shut three stores in Sydney and opened three in the half. The performance of all stores is measured against the best performing.

In the half year, online sales rose 18.3 per cent to $170.8 million or 6.3 per cent of total sales. Murray said JB Hi-Fi was further investing in, and would keep evolving its online offer.

Australian companies are being increasingly caught in the fallout from the coronavirus outbreak, as a ban on Chinese tourists curbs demand in Australia and manufacturing shutdowns across China hit supply chains.

Vitamins group Blackmores went into a trading halt on the ASX as uncertainty rises over the impact of coronavirus on its China and Australian business, while electronics retailer JB Hi-Fi says it will use its market clout to ensure it has first access to electronics goods and mobile phones if Chinese manufacturers started to be squeezed.

Aurizon's chief executive Andrew Harding warned the coronavirus would delay the arrival of 66 rail wagons being made in Wuhan, China, after the Chinese manufacturer declared force majeure, invoking a clause in the contract over unavoidable delays outside of its control.

JB Hi-Fi chief executive Richard Murray said the situation had the potential to change quickly.

"The challenge for us is there's so much noise, trying to cut through the noise – there's no doubt it's a fluid situation,'' he said.

Boral chief executive Mike Kane said a planned shutdown of plants in China over the Chinese New Year was now extending. But it was too early to predict whether there might be shortages of building products. "We don't have those numbers,'' Mr Kane said.

However, some Australian building contractors are starting to warn clients of potential project delays where China is the source of materials being used in local projects.

Ratings agency Moody's said in a new report that the coronavirus outbreak and travel restrictions are a ''credit negative'' for Australian banks because they will cause additional problems for tourism-related sectors, which are already reeling from ongoing bushfires.

The fear of contagion will weaken consumer demand, ultimately hurting the broader economy, Moody's said.

Mr Murray said that in some product lines, JB Hi-Fi customers could purchase substitute brands.

"There are some products you can have alternatives for, for example TVs,'' he said.

In other categories such as mobile phones where customers are extremely loyal to brands, the potential for disgruntlement was higher.

"Obviously with some brands, customers are very loyal to those brands,'' Mr Murray said. "If you had an issue with that brand and that stock that may cause a challenge."

JB Hi-Fi is the No.1 player in electronics retailing, which puts it in a strong position to be at the head of the queue if there are any supply issues.

"As the biggest player in the Australian market we would like to think we can work with suppliers to ensure stock levels are maintained,'' Mr Murray said.

Mr Harding said the spread of the virus could potentially affect coal flows in China and that it was too early to tell exactly what the impact would be. "It's hard to imagine it will be a positive or a neutral outcome," Mr Harding said.

Fitch Ratings analysts warned last week that a prolonged slowdown in industrial activity in China, particularly steel-making, could occur due to the spread of the virus and quarantine restrictions on ships. Aurizon's earnings could suffer if Chinese demand falls for Australian coal moved by the rail group from mines to ports.

The impact on industrial supply chains has been shown over the past 48 hours by Korean car maker Hyundai, which shut down its plants in South Korea because key components made in China had not arrived.

'Suitcase trade' stalled

Blackmores, a glamour stock in early 2016 when it soared to $220 on unprecedented demand for ''clean and green'' health brands from Australia, requested a trading halt early on Monday "pending an announcement by Blackmores concerning its half-year results and outlook for the full year''.

The coronavirus fallout adds to a testing time for new chief executive Alastair Symington, who took the helm of the group last year.

Both Blackmores and its main rival Swisse told The Australian Financial Review last Thursday that coronavirus had led to a rise in demand in China in the past couple of weeks, but that the ban on Chinese tourists to Australia had caused a fall-off in the ''suitcase trade''.

Blackmores shares closed on Friday at $89.44.

The 'suitcase trade' hit prominence from 2016. Tens of thousands of tourists still stock up on large volumes of vitamins and supplements from Australian retail outlets like Chemist Warehouse, and take them back to their home country.

Some of these products are for personal use, while others are sold online on Chinese e-commerce sites in a side business.

The temporary ban on tourists imposed by the federal government in early February is hitting the tourism industry hard. More than 1.4 million Chinese tourists visit Australia each year.

Analysts expect casino operators such as Crown and The Star Entertainment Group will be feeling the pinch, while tourism group SeaLink Travel Group – which runs Captain Cook Cruises on Sydney Harbour and other ferry operations in Queensland, South Australia and Western Australia – has suffered a 20 per cent decline in its share price since the start of January.

Sealink has also been hit by off the major bushfires on Kangaroo Island, off the SA coast.

LNG demand concerns

Worries are also escalating in the LNG sector over demand in China, the second-biggest market for the fuel, amid reports that China National Offshore Oil Corporation said it wouldn't honour some purchase contracts for the fuel, while PetroChina has delayed unloading some cargoes.

LNG exporters in Australia, China's biggest supplier, look set to be caught up in the fallout, especially if other Chinese buyers follow suit. Origin Energy could potentially be affected through its APLNG venture, as could ASX-listed Oil Search through its interest in the Papua New Guinea LNG project.

Woodside Petroleum is expected to see little direct impact given its contract with CNOOC is cheaply priced.

Rystad Energy on Monday took a knife to its estimates for Chinese LNG demand growth this year and is now expecting year-on-year growth of just 4.7 per cent, down from a previous estimate of 10-13 per cent.

Even solar project developers may be affected. Wood Mackenzie had warned of constraints likely to develop in the global supply chain for solar modules in China, leading to delays in deliveries that could last through the next two quarters, potentially delaying the completion of some solar farms.

Homewares and furniture e-tailer Temple & Webster is putting plans for international expansion on ice and stepping up online investment after posting its strongest sales and customer growth.

Co-founder and chief executive Mark Coulter says Temple & Webster's business model would work well in overseas markets such as New Zealand but "there's so much opportunity in Australia" as the $14 billion furniture and homewares market shifts online.

"At the right time [overseas expansion] would definitely be an opportunity for Temple & Webster ... it's a question of making an investment at the right time," Mr Coulter said.

Despite bushfires and heatwaves, Temple & Webster's sales soared more than 50 per cent in January after rising 50 per cent to a better-than-expected $74.1 million in the six months ending December 31, according to a trading update on Tuesday.

In the new trade and commercial division, which sells homewares to decorators, developers and the hospitality sector, sales rose 75 per cent to $5 million and Mr Coulter said the company was working flat out dealing with inbound inquiries.

Earnings before interest, tax, depreciation and amortisation more than doubled to $2.3 million from $1 million, beating market forecasts around $1.3 million, as sales growth outpaced cost growth.

Audited accounts won't be out until mid-February, but Temple & Webster appears set to easily beat consensus forecasts for net profits around $1.15 million for the December-half and $1.9 million for the year, even though earnings growth in the June-half will slow as the e-tailer steps up investment in technology and data, a mobile app, logistics and expanding its private label range.

"There's lots of upside ahead of us," Mr Coulter said.

Temple & Webster sells more than 180,000 products including indoor and outdoor furniture, rugs, wall art, lighting, mirrors and kitchen and bathroom fittings online and recently closed its only bricks and mortar showroom in Melbourne.

Revenue growth was underpinned by a 45 per cent increase in active customers to 335,000 – the strongest growth rate to date – as more consumers started buying furniture and homewares online.

E-commerce accounts for only 4.4 per cent of the homewares market in Australia but Mr Coulter believes online penetration will eventually match that in the UK and US, where it is currently almost 15 per cent.

Growth in repeat and first time orders accelerated in the December-half, conversion rates rose to about 2.5 per cent, revenue per customer was marginally higher at around $380 and customer acquisition costs rose slightly to $44 from $43 in June.

Shares in Temple & Webster, which once held the dubious honour of being the worst float of 2016, rose 24 per cent to $3.50, taking gains over the last six months to 130 per cent.

Royal Bank of Canada analyst Tim Piper said the result was impressive given the furniture and homewares category and the retail environment more broadly had been patchy.

"Customer growth was particularly impressive, the year on year growth rate was the highest result to date, achieved with a steady cost of customer acquisition," Mr Piper said.

Poor trading and a failed funding agreement have led to the collapse of women's fashion retailer Colette by Colette Hayman, placing 140 stores and hundreds of jobs at risk in the ongoing brutal retail environment.

The handbags, jewellery and fashion accessories brand was put in the hands of Deloitte administrators Vaughan Strawbridge, Sam Marsden and Jason Tracy on Friday.

It marks the fourth major retail collapse in the last few months, with fellow fashion retailers Bardot and Jeanswest raising the white flag in January. Discount department store Harris Scarfe also collapsed late last year.

Mr Strawbridge told The Age and The Sydney Morning Herald in addition to poor trading conditions, the business had been expecting fresh funding to replenish its capital after paying off debts. However, the funding deal fell through, forcing the owners to place the business in administration.

"There was some funding the directors thought would be made available, and when that didn't come to fruition they found themselves needing to appoint administrators," he said. It was too early in the process to reveal the nature of the mooted funding, he said.

Its 140-strong network of stores, which employs 300 permanent staff plus casuals, also contains a number of underperforming stores, which Mr Strawbridge said administrators were currently assessing potential options for.

The eponymous accessories label was founded in 2010 by businesswoman Colette Hayman, the former owner of jewellery chain Diva, who operates the company alongside her husband Mark.

Ms Hayman began the handbag retailer after selling Diva in 2007 to Brett Blundy's Lovisa. It remained privately owned for much of its life before investment giant IFM Investors took a stake in the business in 2017.

Company records show the retailer, which is registered as the CBCH Group, is 51 per cent owned by Ms Hayman and her husband, and 49 per cent owned by IFM.

It has yearly gross sales of more than $140 million, with the company reportedly selling upwards of three million handbags per year. Most of its stores are located in Victoria, New South Wales and Queensland, and it also has 14 stores in New Zealand.

It's unlikely to be the last major retail collapse for the first half of the year, with analysts and experts warning the poor trading conditions, high rents and weak consumer confidence could see more prominent brands give up the ghost.

Fellow handbag and accessories retailer Oroton collapsed in 2017 after the upmarket brand failed to find buyers.

Mr Strawbridge, who is also overseeing the administration of Harris Scarfe, said conditions were worse than usual, but remained optimistic about the collapsed companies' finding buyers.

"I don't think we've seen this number of retailers who've struggled at the same time before," he said. "But it would be a real shame if those businesses didn't come out of administration."

Colette stores will continue to trade while Deloitte seeks to either recapitalise or sell the business, with administrators confident there would be an appetite from buyers given the strong "heart" of the business.

Staff will continue to be paid by the administrators and gift cards will be honoured.

Furniture and bedding retailer Greenlit Brands has plunged to a nearly $300 million loss following a massive impairment and residual losses from failed department store chain Harris Scarfe.

In documents filed to the corporate regulator on Wednesday night, Greenlit revealed its total loss for the year up to September 29 came in at $287.7 million, a huge increase from its $23.7 million loss in the 2018 financial year.

This was due to a $154 million write-down of the company's goodwill, which assesses things like brand recognition, and $125 million in losses from its since-divested general merchandise division, which included now-collapsed department store Harris Scarfe.

Greenlit is the parent company for a number of prominent homegoods retailers, including Freedom, Fantastic and Snooze. It sold its general merchandise division, to private equity company Allegro in November.

Its revenue from continuing operations, which excludes its divested division, stayed steady at $1.07 billion, up marginally from $1.03 billion in 2018.

In a report from its directors, the company noted its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) on continuing operations came in at $49.6 million for the year, a drop of nearly 30 per cent from 2018.

The directors flagged the business was continuing to look for an exit from South African parent company Steinhoff International. This included the purchase of a number of trademarks from Steinhoff to reduce royalty exposure and ensure "unfettered ownership".

"[Greenlit] remains financially and operationally independent from its parent group, Steinhoff lnternational. [Greenlit] continues to carefully and methodically consider various options around separation from its ownership by Steinhoff," the directors said.

The company also noted it would look to sell its non-retail investments, such as distribution centres, to invest further in its existing brands and pay down debt.

In a statement, executive chairman Michael Ford said the local retail environment continued to be challenging, but noted the company was pleased with its EBITDA result for its continuing operations.

"Our strategy for 2020 and beyond is to continue to optimise the brand strength, competitive positioning and synergies across our core household goods brands and to continue to pay down remaining external debt of circa $50 million," he said.

Greenlit's financial report sheds further light on the issues facing Harris Scarfe prior to its sale to Allegro and eventual collapse less than one month later, showing the division had ramped up its losses in the year prior to the sale.

Revenue for the general merchandise division in 2019 – which included Harris Scarfe, Best & Less, Postie and a franchise agreement for UK department store Debenhams – totalled $994.6 million.

The division posted a post-tax loss of $124.5 million for the year, a significant increase from the $17 million loss in 2018. Its net assets for the year were $44 million, consisting mostly of inventory.

The $154 million impairment to Greenlit's overall goodwill likely reflects the loss of any brand recognition, customer base and patents or trademarks resulting in the sale of its general merchandise division.

Greenlit's broad losses reflect the difficulties facing Australia's Australia's retail sector, which has wrestled with weak spending and poor consumer confidence since the start of 2019.

Following the sale to Allegro, Greenlit's chief operating officer Tim Schaafsma resigned from the business after an 18-year career with the business including roles as managing director of Freedom.

"Tim Schaafsma resigned as COO and Director of Greenlit Brands at the end of 2019, following the successful divestment of the Group’s general merchandise division, to take a break after his long career in the retail sector and pursue other interests," the company said in a statement.

China has cancelled all domestic and outbound group tours until further notice, spelling another hit to tourist spending in Australia.

In what is traditionally China's busiest travel season, the China Travel Service Association (CTSA) has announced the temporary suspension of all group tours and package trips.

It described these as “hotel and air ticket services,” both within China and abroad.

CTSA advised trips already underway are allowed to continue to completion, as are any scheduled before January 27. 

CTSA’s statement followed an order from the Ministry of Culture and Tourism on January 24 to halt sales of group tours and travel packages.

The move is aimed at containing cases of novel coronavirus by halting non-essential travel activities, meaning retailers could lose out on what is traditionally a lucrative trading period.

Tourism Research Australia reported that more than 1.3 million Chinese — excluding children — visited Australia in 2018 and spent $11.5 billion.

Chinese tourists account for more than 15% of the total inbound market.

The move adds another blow to Australian retail and tourism spending, as the national bushfire disaster takes its toll.

Earlier this month, the Federal Government announced a $76 million recovery package focusing on rebuilding Australia’s tourism industry in light of the bushfire crisis.

Morrison said Australian tourism was facing “its biggest challenge in living memory” after the fires made international headlines.

Shopping centre landlords “spooked” by the collapse of high-profile retailers will likely be forced to renegotiate rents as store closures eat into occupancy rates and income from malls.

Australia’s largest retail landlords have so far resisted pressure to cut rents, but they will bear the brunt of an unusually high number of store closures after a slew of well-known merchants raised the white flag in the face of persistently challenging trading conditions.

The country’s largest mall owner Scentre Group, in particular, faces a major task to replace struggling retailers, with as many as 87 stores across its portfolio in voluntary administration.

Scentre operates the vast network of Westfield-branded malls founded by Sir Frank Lowy, including centres in Chatswood and Bondi Junction.

Another large mall manager, Vicinity Centres, has exposure to at least 33 redundant stores run by failing retailers. Vicinity manages the Chadstone mega-mall in Melbourne and Queen Victoria Building in Sydney.

So far this year, womenswear chain Bardot (58 stores), science retailer Curious Planet (63 stores), discount department store Harris Scarfe (21 stores), games seller EB Games (19 stores) and audio retailer Bose (about eight stores) have announced closures.

Fashion retailer Jeanswest also collapsed last week, with many of its 146 stores likely to close.

Richard Li, the local vice-president of fast-growing Chinese variety retailer Miniso, told The Age and The Sydney Morning Herald he had seen landlords recently become much more willing to talk shop. Miniso has 32 stores, including a number at the country’s largest shopping centres.

“We always try and talk with them to reduce our rent, every year we bring up the topic, and previously they’ve never bothered to talk to us,” Mr Li said. “They’re very arrogant when it comes to rent. But recently, it’s weird, a couple of them have wanted to talk with us.”

With plans to have 100 stores by the end of the year, Mr Li notes rent is one of his company’s largest expenses. He believes landlords may have been spooked by the recent slew of retail closures and could be seeking to lock down their current tenants.

“They’re trying to keep current tenants and look for longer-term [leases],” he said.

In a note to clients, UBS analyst Grant McCasker downgraded Scentre’s shares to a “sell” rating, warning investors in the real estate company would suffer the most from the “abnormally high” number of store closures over the past month.

Analysts expect Scentre’s occupancy rate to fall slightly throughout 2020, noting the company could also suffer from further anticipated store closures at Big W and space rationalisation at retailers Myer and David Jones.

Scentre Group said annual customer visitations across its portfolio were 535 million and growing. Occupancy was above 99 per cent and had been for 20 years, a spokeswoman said.

“We are always listening to customer feedback to identify new and sought-after brands so we can remix and curate the right offering of retail products, services and experience,” she said.

Both of Australia’s major department stores flagged at their full-year results last year they would take an “aggressive” stance on renegotiating leases, with both Myer and David Jones looking to reduce store footprint by 10 to 20 per cent.

Premier Investments, which owns brands such as Smiggle and Just Jeans, also told investors it would play hardball with landlords, saying it had no qualms about walking away from leases where landlords did not provide “realistic” rents.

Broadly, Mr McCasker said the retail sector was unlikely to improve, noting it was the worst-performing sub-sector for four years running. UBS also predicts specialty retail sales will remain in the doldrums, forecasting sales growth of just 1 to 2 per cent.

With Miniso’s same-store sales growing at a clip of about 20 per cent a year, the retailer has managed to avoid the malaise of Australia’s retail market, with Mr Li warning conditions have remained grim into the new year.

“The general market, it’s worse. Most people are suffering,” he said.

Louis Vuitton has announced that it's opening the brand's first-ever cafe and restaurant next month at its Osaka flagship store. 

Le Café V will be located on the top floor of Vuitton’s new four-level Osaka maison, and will include a menu designed by acclaimed Japanese chef Yosuke Suga.

Michael Burke, chairman and chief executive officer of Vuitton, confirmed the development, and hinted that more restaurants and even hotels could be in the pipeline for the brand.

The development follows the news that Tiffany & Co., which is owned by LVMH, the same company that owns Vuitton, is opening its first European Blue Box Cafe in Harrods.

LVMH-owned Dior is also preparing to dip its toe into hospitality: the brand's flagship on Paris's Avenue Montaigne is currently undergoing renovations and will reopen with a restaurant.

Louis Vuitton was founded in Paris by Vuitton in 1854​ and was sold to LVMH in 1987.

Super Retail Group has delivered sales growth over the first half of 2020, despite the impact of bushfire and drought on Australia’s struggling retail market. 

Group sales across the Supercheap Auto, Rebel, BCF and Macpac brands grew 2.9 per cent, while like for like sales rose 1.7 per cent over the 26 weeks to December 28. 

“After a strong start to our peak trade season with higher year-on-year trading across the Black Friday and Cyber Monday online events, the bushfire and sustained drought conditions have impacted December trading,” said Super Retail Group chief executive officer Anthony Heraghty said. 

“Whilst we expect the impact to be one-off, it is difficult to estimate how long it will take for sales to recover, specifically in the outdoor sector.”

According to Super Retail, while all brands have been impacted, Macpac and BCF were most affected due to their higher exposure to the outdoor category. More than 50 BCF stores have been directly impacted by fire and/or drought, and the associated smoke haze hurt the business’ peak trading season, and several stores were forced to temporarily close.

Supercheap Auto also saw impacted sales in regional NSW, Victoria and Queensland, Rebel saw slowed sales momentum.

“While first half earnings were challenged by exceptional circumstances, there are a number of positives in the expected result that bode well for the second half,” Heraghty said. 

For one, online sales over the period grew by 22 per cent, showcasing a strong omni-channel strategy delivered across the group’s brands, while margin and sales largely stabilised in the second quarter. 

As such, the business is now expecting its first half earnings before interest and tax to land between $113 million and $115 million, subject to external review. 

Investors have sent Mosaic Brands' market value tumbling in reaction to a dire sales update over the business impacts of bushfires.

The fashion retailer – formerly known as Noni B - saw its shares decline 17 per cent to $1.87 by the close of trade, with Wilsons analyst John Hynd labelling the update disappointing.

"This is, unfortunately, a downgrade to consensus estimates," he said. "Mosaic previously had a [2020 financial year estimate] EBITDA target of $75 million since acquiring the Specialty Fashion assets, but given today’s announcement it's looking increasingly unlikely they will achieve it."

The announcement comes as businesses begin to grapple with the full toll of the bushfires, which have burnt through more than 10.7 million hectares of land and killed an estimated 1 billion animals, on their trades.

As the owner of the Noni B, Rivers and Katies clothing chains among others, the company said bushfires had directly hit about 277 stores, with even more reeling from the frail consumer confidence levels left in the wake of the fires.

Overall, comparable sales for the half-year ended December 29 were 8 per cent lower than the year before, with a significant curtailment from the second half of November into December.

Mr Hynd, who has rated the stock "overweight" with a target price of $4.20, said Mosaic was more exposed than its competitors to bushfire-related risks.

"Mosaic has a more significant non-metro store footprint than City Chic, for example," he said.

But the analyst said the exposure was reasonable for the type of customer the company has and there were some clear positives from today’s release, especially given trading appeared to be encouraging until the second week of November.

Mr Hynd said the main positives out of Tuesday's announcement were that Mosaic remains net cash and had a strong cash conversion through the period.

"Gross margins continue to improve and operating cost efficiencies appear to have been better than we had expected," he said.

Mosaic said it had a net cash position of about $4 million.

"As a result, the board anticipates a dividend for the period consistent with the company’s dividend policy of 60 per cent to 70 per cent of profit after tax," Mosaic said.

Looking ahead

The company also said earnings before interest, tax, depreciation and amortisation were up 13 per cent to $33 million over the corresponding prior period for the first half of the 2020 financial year. And online sales, excluding those of the newly acquired EziBuy, contributed 10 per cent of revenue in the same period.

"The Group is well prepared for the second half, with a dedicated team, excellent product and a healthy stock position," Mosaic said.

"Second-half earnings are anticipated to demonstrate higher growth, relative to [the 2019 financial year], than in the first half, particularly given the extraordinary external factors that have impacted first-half revenue."

Mosaic chief executive Scott Evans was unavailable for comment on Tuesday.

In light of the bushfires, the retailer had also donated $50,000 to the St Vincent de Paul Bushfire Appeal and pledged $860,000 of clothes to the GIVIT charity.

"Mosaic Brands' team members and stores have strong relationships with their communities across the country – especially in many of the regions affected by the bushfires," it said.

"The group continues to monitor this catastrophic situation closely to ensure the safety of its team during these very difficult conditions. It is relieved to be able to report that, to date, all team members are safe."

Former David Jones and current kikki.K chief executive Iain Nairn has taken up the role of president at Hudson’s Bay, Canada’s most prominent department store chain. 

The business currently trades in 89 locations across Canada, operating in the fashion, beauty, home, accessories, and food verticals. 

Starting January 12th, Nairn reports directly to chief executive Helena Foulkes. 

“Few brands have such a strong awareness and connection with customers as does Hudson’s Bay, and I am thrilled to join such an iconic retail institution,” Nairn said. 

“I am looking forward to working with the team and building on the great work that has been underway to evolve the Hudson’s Bay experience across all channels.”

It isn’t clear whether Nairn will continue his role as chief executive of stationery retailer kikki.K, though Inside Retail has reached out for clarification. 

Foulkes said Hudson’s Bay had taken time to conduct a thorough global search for a replacement for former-chief executive Alison Coville, who stepped down in February 2019. 

“Iain brings strong leadership, sharp focus, and in-depth expertise that I believe will make a positive impact on Hudson’s Bay,” Foulkes said. 

“To date, the team has made great strides in fixing the fundamentals, evolving our service model and elevating our merchandise assortment. 

“There is a tremendous opportunity in Canada to deliver an outstanding customer experience, and I am excited to work with Iain to elevate the brand and drive for future success.”

The victims of the prolonged downturn in the nation’s $320bn retail sector keep piling up, with national jeans and fashion chain Jeanswest placed into voluntary administration on Wednesday, just weeks after the collapse of department store Harris Scarfe and the demise of women’s fashion chain Bardot.

The failure of Jeanswest threatens almost 1000 jobs and kicks off what could be a round of further retail collapses in the next few months.

Brands that limped into the Christmas sales could finally fail after what may have been a disappointing holiday trading period.

KPMG’s Peter Gothard and James Stewart were appointed voluntary administrators of the Australian operations of Jeanswest Corporation

The administration does not cover the New Zealand arm of the once popular denim chain.

The iconic Australian retail brand opened its first store in Perth in 1972.

Jeanswest now employs 988 people in 146 stores across Australia. It is best known for its denim, wardrobe staples and maternity wear.

Mr Gothard, a KPMG partner, said Jeanswest would continue to operate while the administrators analysed the business.

“The administrators will be looking at all options for the restructure or sale of this established Australian retail business and are seeking urgent expressions of interest from parties interested in acquiring or investing in the business,’’ Mr Gothard said.

James Stewart, KPMG’s retail restructuring practice leader, told The Australian he was hopeful a saviour would emerge but he admitted that amid the current retail malaise it was now a “buyer’s market”.

“It is fair to say that there are some retail assets being sold in the market and some that aren’t,’’ he said.

The denim chain, owned by the Yeung family, had encountered problems like those other Australian retailers had seen.

“Jeanswest is an iconic Australian denim brand, well known in the leisure and casual wear market place. Like many other retailers, the business has been challenged by current tough market conditions and pressure from online competition. The administration provides an opportunity for Jeanswest to restructure so as to better respond to the challenging Australian retail market.”

Parties interested in acquiring or recapitalising the business are encouraged to contact KPMG, with the first meeting of creditors of the company to be held in Melbourne on January 28.

Jeanswest has been struggling for years. The Australian operations were recently bought by local management from its parent group, the Hong Kong-listed Glorious Sun.

In 2017 the then Hong Kong-based owner of Jeans­west warned that Australians were more interested in splurging their disposable income on “lifestyle spending’’, such as travelling or a new plasma television, instead of buying a new pair of jeans, resulting in a “lethargic” and “slothful” retail environment where only discounting would shift stock.

Sales in Australia and New Zealand had dropped 12.3 per cent to $HK973.77m ($181.5m) in calendar 2016, from $HK1.1bn in 2015.

There could be further failures in the retail sector as many struggling companies that held out for the Christmas sales — which typically drive the majority of profits for the year — come up short.

Recent data collected by ANZ suggest that Christmas sales were disappointing. Peak Christmas season (December 16 until Boxing Day) was much weaker year than in the past few years. Card data shows sales down more than 5 per cent in 2019.

“Very strong Black Friday sales are likely to be behind the weaker-than usual December retail sales figures,” ANZ said.

The Reject Shop defended a sudden spike in share price after a query by the ASX left the business one day to respond or risk suspension from the market. 

During the period between the 18th of December and the 6th of January, The Reject Shop’s share price jumped 41.6 per cent from a low of $2.86 to a high of $4.05 per share.

In response, the ASX questioned if there was some unannounced, confidential information that would have this effect on its share price, and if so, requested the business release the information, be put in a trading halt, or in a worst case scenario face suspension. 

According to listing rule 3, a company listed on the ASX is required to disclose any information that a “reasonable person” would expect to impact share price as soon as is reasonably possible.

According to the department store, it could be the announcement of Andre Reich as its new chief executive officer on December 13th that caused the sudden rise in share price, as well as a buy up of The Reject Shop shares by Grahger Retail Securities. However, it isn’t certain.

“The company is not aware of the reason for the recent trading in its securities,” company secretary Michael Freier wrote to the ASX.