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"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.

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.

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.

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.

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.

"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.

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.

"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.

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.

The group of companies trading as Colette by Colette Hayman has been acquired out of administration by a team of investors led by Bernie Brookes and John Skellern, who previously worked together as the former CEO and former general manager of procurement at Myer, respectively.

The transaction was approved by creditors of the group at their second meeting last week, although details of the deal were not disclosed.

Brookes will be the major shareholder and chairman of Colette by Colette Hayman, while Skellern will serve as the CEO.

The new owners have retained a number of the brand’s key managers and staff, who will provide a “kick start” to the business, and concluded negotiations with landlords to ensure the streamlined store network will be able to continue trading. Relationships with suppliers have also been maintained, meaning much-needed fresh stock can be delivered immediately to stores.

The freshly recapitalised handbag and accessories brand will continue trading through 35 bricks-and-mortar stores in Victoria, New South Wales, South Australia, Queensland and Western Australia, and a burgeoning online store.

This is a significant reduction from the brand’s previous footprint of 138 stores across Australia and New Zealand, and revenue is expected to decline accordingly. The group previously had sales in excess of $140 million.

“The new Colette footprint comprises only one-third of the original stores, and a fledgling online business, which with dedicated resources and focus will deliver one-third of total revenue,” Brookes said in a statement shared with Inside Retail.

The retail veteran acknowledged that some might question his investment in a bricks-and-mortar fashion business given the challenges the sector is facing right now, but he defended the decision, citing Colette by Colette Hayman’s strong brand, private label margins and great customer base.

“My decision to take the majority shareholding will be viewed as contrary to the current difficulties facing bricks and mortar retail,” Brookes said.

“Owning a fashion retail chain is about true omnichannel retail; a strong online presence and physical stores. Our purchase will enable the business to land in a future post Covid-19 in advance of any cessation of lockdowns and restrictions in the future, and our core offer of handbags and jewellery will continue, with a fresh focus on the strong performing stores retained, and a significant investment in the digital space.”

Brookes said the new owners plan to stabilise and then build the brand while investing in the business.

The acquisition has preserved the jobs of nearly 300 employees, including close to 100 permanent roles, according to a statement issued by Deloitte Restructuring Services partners Vaughan Strawbridge, Sam Marsden and Jason Tracy, who were appointed voluntary administrators of the group on January 31.

The administrators reportedly received offers from several parties, despite the market uncertainty brought on by Covid-19.

“The sale of the business to a group of experienced retail investors represents a significant achievement in the current environment, and reflects the strength of the brand and the commitment of the group’s employees to its future,” Marsden said.

New research reveals a shift among Australian shoppers towards “conscious consumerism”, with 87 of them saying that they are more likely to purchase products that are ethically and sustainably produced.

The survey of 1002 Australians commissioned by parcel delivery service CouriersPlease (CP) also shows that 85 per cent of consumers want retailers and brands to be more transparent as to where their products come from and how sustainable they are, as well as whether or not their producers are engaging in ethical practices.

NSW tops the states when it comes to conscious consumerism, with 87 per cent of respondents calling for transparency from retailers, followed by 85 per cent of Queenslanders, and 68 per cent from ACT.

CP also found that 41 per cent of Aussie consumers are willing to pay more for ethical and sustainable products – more so among younger shoppers (those below 30 years old) at 46 per cent compared with 34 per cent of over-50s. A higher proportion of women are also willing to spend more on sustainably produced products at 46 per cent, compared with 36 per cent of male consumers.

“Our research reveals that Australians are becoming more conscious shoppers and are starting to make more considered choices by seeking, and purchasing, products that are sustainably and ethically produced,” Paul Roper, Chief Commercial Officer at CP, said. “This is an important incentive for retailers to embark on sustainable initiatives within their own operations and supply chain.”

Roper added that CP themselves are working as hard as they can to achieve carbon neutrality.

“We recently gained LowCO2 Certification for all our operations from The Carbon Reduction Institute, and are working on several other ‘green’ initiatives which will help us on our path to becoming a carbon-neutral carrier by 2025,” Roper said. “One such initiative is our partnership with sustainable sock company Manrags, which has provided all Australian households with access to a digital at-home textile collection service.”

On Thursday Mr Lew took fresh aim at the retailer, which posted the second biggest loss in its history at $172 million, calling its full-year 2020 results "disastrous and shameful".

Total sales fell 15.8 per cent to $2.5 billion in the period, with comparable store sales dropping 3.3 per cent, reflecting widespread store closures because of COVID-19 restrictions, pushing Myer deep into the red. Group online sales, however, surged more than 61 per cent to $422.5 million.

The department store had $159 million of significant items in the year ended July 25, which included impairment to brand names of $95.9 million and lease right-of-use assets at $37.1 million. In fiscal 2019, Myer posted a $24.5 million net profit.

Mr King said he would in coming weeks finalise negotiations with landlords over rent reductions for the period impacted by COVID-19, and then would turn to stores coming up for lease renewal and talk about space reduction, too.

Over the next three years Myer had 11 stores up for lease renewal.

"We need to get a win-win for both of us and if not we will move on," he said. "We will still end up with a fair chunk of stores but they will be smaller, more focused and online will grow rapidly, having doubled over the past two years. We project this to continue. "

Mr King skipped outlook comments given the unpredictability, but said Myer's CBD stores would face challenges for some time. Despite the hurdles, he said the aspiration to become a $1 billion business in coming years was still within reach.

Citi analyst Bryan Raymond has a buy/high risk call on Myer, which he believes has a balance sheet to withstand the challenging near-term conditions, with 2021 earnings likely to remain under pressure given the category mix and lack of wage subsidies.

Sales to corporate daigou, highly organised shoppers who run their own businesses buying products in Australia to sell in China, represent a significant proportion of infant formula sales in Australia and New Zealand.

A2’s ASX-listed shares plunged more than 10 per cent to a six-month low of $15.33 in reaction to the revised outlook. Shares closed down 11.42 per cent to $15.20.

Interim chief executive Geoffrey Babidge said the daigou channel had been very important to a2 establishing its brand in China.

"It's a channel that we have been able to manage well and it's one that we will support, and we'd like to be confident that will come back in a form that is still meaningful for our business in the medium term."

Mr Babidge said he was positive about the outlook "subject to the COVID situation in Victoria, or other states obviously being brought under control".

"We'd prefer a disruption such as this which, let's be clear, is substantially caused by external factors, did not take place," Mr Babidge said.

Andrew Mitchell from long-term investor Ophir Asset Management said a2 was still highly regarded and continued to win market share with Chinese consumers.

"We think ripping the Band-Aid off now with a swift cut to inventories is the most sensible decision, but painful in the short term. We fully expect trading margins for daigous will be quickly restored, improving their sales efforts as Melbourne emerges from lockdown," Mr Mitchell said.

A2 has been under scrutiny after its top executives sold millions of shares following the company’s financial results in August. Chairman David Hearn sold 250,000 shares for $NZ5,077,500, Mr Babidge sold 100,000 shares and Asia Pacific chief executive Peter Nathan sold 750,000 shares.

Mr Babidge defended the share sales, saying "the company and management are completely aware of the continuous disclosure obligations, which was the case at the time, obviously, when the share sales were made during August.

"As you know there are limited windows when trading can also take place and that occurred immediately after the release of the 2019-20 financial results in a very short window."

Former investor Wilson Asset Management reduced its position in the company following the financial results and then exited entirely after the share sales. "Significant insider share sales announced by key executives were a catalyst for us to reassess our thesis and we subsequently exited our remaining position" Wilson Asset Management analyst Shaun Weick said.

"Our main concern was that the bulk of the company's key executives were selling – and not insignificant amounts – combined with the fact that there were already lingering concerns around daigou channel demand patterns, we felt the outlook was increasingly challenging in the short term."

Technology group WithWine has appointed Cellarmaster’s former chief Ben Copeman-Hill as chief growth officer. 

Prior to joining WithWine, Copeman-Hill was GM at the wine club business Cellarmasters for five years. He specialises in direct-to-customer and e-commerce wine business growth and has almost 20 years of experience in global sales and marketing background. 

“Ben has a strong background leading the growth of Australia and New Zealand’s most prominent direct-to-customer businesses,” said Richard Owens, CEO and founder of WithWine.

“Now with Ben joining our team, we are combining our extensive technological expertise with in-depth knowledge of the wine industry, helping wineries connect with their customers and enabling their customers to enjoy a polished and personalised service through their device of choice,” he added.

Founded in 2014, WithWine is a direct-to-customer management system of choice for Australian wineries, including Henschke, Petersons and Leeuwin Estate.

Canberra was focused on creating jobs and part of that would be about providing inducements for the local manufacturing sector, said Simon Conn, senior portfolio manager at Investors Mutual.

The focus on local manufacturing also came after supply chains were interrupted during the COVID-19 crisis, prompting a hunt by many local companies for domestic alternatives, he said.

"So the timing is good and there is a real opportunity to try and help revive local manufacturing."

"They are an obvious beneficiary from the budget and there's a pretty direct correlation," said Mr Beddow. "If there's more housing starts or more incentives – particularly low interest rates – people will probably buy [or] build more housing.

"I don't think that there's a lot of direct effect outside the builders."

Executive chairman Mr Lew defended the payment of a robust final dividend of 36¢ per share to shareholders, which will total $57 million. He said that was because of a strong trading performance as online operations accelerated during the pandemic after Australian stores were shut for much of late April and early May, and the board had not factored in any JobKeeper payments.

"We need kids back at school,'' Mr McInnes said. In markets where schools had opened again in the pandemic, Smiggle had rebounded, he said.

But the big restructuring in Britain was needed to put it in the best position possible to reinvigorate once the pandemic passed, with much more focus on the online division.

In the six months ended July 25, Smiggle's total online sales climbed 57 per cent, representing 25 per cent of all sales in the brand.

Myer will not replace two outgoing board members after the business’ second largest shareholder, Wilson Asset Management, fired shots at its board size and fees.

The department store said it will not seek replacements for Lyndsey Cattermole and Julie Ann Morrison who will be stepping down as of its upcoming AGM – a decision chairman Garry Hounsell said Myer had been mulling over for a while.

However, the announcement came days after Geoff Wilson, chairman of Wilson Asset Management, said the struggling department store needed to reduce the amount of directors and keep a temporary 16.7 per cent fee reduction permanently.

Hounsell noted that directors fees had been reduced three times in the last two years, and that the current reduced fee structure will remain in place for at least two years.

Wilson also called for the director fee pool to be reduced, something Myer has agreed to review before the upcoming AGM to “ensure it aligns with the company’s current position”.

“Myer takes this opportunity to thank Wilson Asset Management for its ongoing support of the company during what is, and we agree with the comment in your letter, ‘a difficult and uncertain time’,” Hounsell wrote in a letter responding to Wilson.

According to AFR, retail industry sources suggest the announcements could have been made “in cahoots” in an effort to make both sides look good. “The sequence of events is too cute by half,” one source told AFR.

In comments made to The Age, however, it didn’t appear that Wilson felt Myer’s actions had been enough, saying it is within their constitution to have a minimum of four directors – meaning they could lose one more.

Myer’s largest shareholder Premier Investment recently took aim at Myer’s “disasterous and shameful” $172.4 million loss, and chairman Solomon Lew stated Wilson needed to accept that losses will continue to occur unless there is “immediate change”.

Myer’s 2020 AGM will take place on Thursday, 29 October.

Australians are shopping their way out of the sharpest economic downturn since the 1930s.

The country’s biggest retail bank said a surprisingly strong lift in spending by its millions of card customers over recent weeks suggests the economy will buck pessimistic Treasury forecasts and expand strongly through the September quarter.

Amid fears the COVID-19 recession would stretch to three straight quarters for the first time since the 1980s, Commonwealth Bank head of Australian economics Gareth Aird said he now expected real GDP would grow by 2 per cent, versus an earlier forecast that the economy would stall.

While growth in the order of 2 per cent is not the economic “snapback” Scott Morrison had hoped for when the country was riding high in June on an earlier than expected national reopening, it would still be the fastest quarterly expansion since 1995, when the economy grew by 2.3 per cent seasonally adjusted.

Mr Aird said he “had expected to see a modest rebound in household consumption over (the third quarter) as a lift in expenditure outside Victoria was partially offset by the lockdown-induced contraction in spending in Victoria”.

“But what has surprised us is the strength of spending outside of Victoria,” he said.

Weekly spending on CBA cards since June had been “materially” above the second quarter, Mr Aird said, averaging year-on-year growth in the order of 6.5 per cent versus around -3.5 per cent. Spending on the likes of homewares has stayed strong, while other areas such as entertainment have shown solid growth, even as they remained down on a year earlier.

By state, Queensland and Western Australia had led the growth in card spending.

“We now expect real household expenditure to post a chunky 5 per cent increase over the September quarter, following the 12.1 per cent contraction in the June quarter.”

The analysis chimes with profit figures from retailer Harvey Norman, which on Monday revealed sales had surged by an ­incredible 30 per cent over the 11 weeks to mid September.

The sharply upgraded outlook comes as the government grows more confident that Victoria’s shutdown won’t overwhelm a recovery outside the economically devastated state.

Treasury’s most recent estimate that national GDP would flatline or even contract through the September quarter is increasingly looking too downbeat.

The Prime Minister on Sunday said he expected the economy to add hundreds of thousands of jobs by Christmas, and walked back on official forecasts that the unemployment rate would approach 10 per cent.

Labour force figures released last week shocked economists when they showed the robust jobs recovery extended into a third month despite the drag from Victoria, with the unemployment rate plunging to 6.8 per cent from 7.5 per cent.

Despite warnings from Josh Frydenberg that the jobless measure would continue to climb in coming months, Mr Aird said unemployment had now peaked and would drift lower to 6.6 per cent by December.

As Victoria’s draconian lockdown measures appear to be suppressing the second wave of infections, allowing some easing of restrictions outside of Melbourne, the further lifting of restrictions through the final three months of the year would help national GDP lift by a further 1.8 per cent, alongside an increase of 140,000 jobs, Mr Aird said.

With expectations for an earlier recovery, Australia’s economy will shrink by 3.3 per cent in 2020, versus a previous estimate for a fall of 4.3 per cent.

Consensus earnings for listed discretionary retailers were priced on a ''muddle-through scenario'', with calendar 2021 sales and earnings estimates between 5 percent and 9 per cent ahead of pre-COVID-19 levels.

"On the whole, we believe retailers' share prices are factoring robust trading conditions,'' he said.

He said the global financial crisis experience suggested relative P/E multiples retraced about 35 per cent from their post-stimulus peak.

The ''buy'' ratings on Woolworths, Harvey Norman, Adairs, Metcash and Premier Investments were built around attractive valuations and structural shifts toward online, and a rebalance in the retail and landlord relationship when it came to the sharing of profits. UBS also factors in medium and long-term growth opportunities.

Premier Investments, chaired by billionaire Solomon Lew, has been the most aggressive in trying to up-end traditional rental agreements with landlords, and has pushed for paying a rent based on the amount of sales a particular store is doing, instead of a fixed rent.

Australian eTailer Hello Molly has launched its own in-house activewear brand Elette Fit. 

The launch of the label follows the surge in demand for activewear during the pandemic, with the market now valued at AUD$222.3 billion according to Hello Molly. 

During the lockdowns, the business saw that Australians were searching for comfortable, fashionable, on-trend activewear that featured breathable fabrics, digital prints and colour-blocking elements. 

Capitalising on these trends, Hello Molly's Elette Fit is a 19 piece range that features mid to high-intensity sports leggings and sports bras along with a tracksuit, bike shorts and perforated training tees. 

The line features trend-driven elements such as pocket detailing, block-colours of bold blue and fuchsia and versatile silhouettes. 

Designer Catherine Ellul said that the new range offers pieces for both the lifestyle and fitness focused Australians. 

"Activewear is a category that is timeless, but it is having a real moment in the current COVID climate.

"As people are realising what a privilege it is to be able to go outside and be active, everyone is in demand for it, whether it be for functional or fashionable purposes.

"The collection offers a range of styles for the comfort aspect, which is a growing category for us, such as the jogger and jumper set.

"The focus on a healthy active lifestyle is met with performance leggings, crops and technical fabrics.

"Elette Fit has a piece for everyone and will satisfy what customers are looking for in today’s lifestyle," she said. 

Brand creative manager Jasmin Fraser added that the business developed Elette Fit to be its own standalone brand within the Hello Molly umbrella. 

"Instead of developing a collection branded as Hello Molly, we took the opportunity to define and carve out a new identity within this space, honing in to the ethos of fitness, femininity, boldness and feeling elite while really defining what that means and looks like.

"Elette Fit offers dedicated branding to directly inspire the customers in this space, which is new to us. 

"The Hello Molly girl can simultaneously be an Elette Fit girl, however, there are key aspects of the tone of voice, colour palette and branding where we saw an opportunity to dive in heavily to the performance activewear industry.

"Elette Fit being separate in a sense to Hello Molly allows us to explore that.

"We want to have just as strong branding in that space with Elette Fit as Hello Molly does in feminine dresses and party wear, without conflicting with our established Hello Molly identity," she said.

The Elette Fit range is now available to purchase from the Hello Molly website and retails for between $34.95 and $89.95. 

"We've got to get there much quicker, so we have to accelerate our way through that. We have been engaged with all 12 of our landlords, and we've been having very good discussions and we're making good progress," he said.

Mr Bagattini's comments follow a tough year for David Jones, with the department store plunging to an adjusted operating loss of $33 million, a massive decline from last year's $37 million profit. Total sales fell 6.4 per cent to $2.06 billion, and comparable sales declined 6.9 per cent.

The company chose to trade through the initial COVID-19 lockdowns in March and April despite many of its retail rivals closing their doors. This meant David Jones' sales hit was not as pronounced as rival department store Myer's 15.8 per cent fall, though both retailers suffered significant hits to their earnings.

Mr Bagattini admitted the retail environment for department stores globally was challenging, but said he remained committed to the model, which he said he hoped to return to its roots by emphasising the retail experience they offer to shoppers.

"Our responsibility is to ensure that it is relevant in today's context, and that's through the whole brand environment, the store look and feel, the experiences, the services that all once made department stores a great place to shop," he said.

"Unfortunately, globally some of these large-format department stores have stepped away from these things and that's why they're in trouble. So that's really where we've got to get to for David Jones."

For the time being though, online sales were somewhat of a saving grace for the retailer, doubling for the year to now contribute 14.2 per cent of David Jones' total sales.

Woolworths' Australian fashion stablemate Country Road Group (CRG), which includes the brands Country Road, Trenery, Witchery, Mimco and Politix, fared slightly better, with its operating profit staying in the black at $40 million, though that was still down 60 per cent on last year's.

CRG's revenue dropped 14.3 per cent as its stores were shut for two months. Online sales only grew 15.4 per cent for the year, though CRG's online business is markedly larger than that of David Jones, comprising a quarter of its total sales.

Sales for the first 10 weeks of the 2021 financial year continued to be poor for both David Jones and CRG, down 11.5 per cent and 8.8 per cent respectively, which their South African parent attributed to the current Victorian lockdowns.

Mr Bagattini said the state's strict lockdown measures were "a little painful" for the retailer and he was hoping trade could resume on October 26.

Along with renegotiating its leases, David Jones is in the midst of disposing of its significant property portfolio.

The chief executive said there has been significant interest in its remaining Sydney and Melbourne flagship stores, the proceeds from which will be used to reduce the retailer's $500 million debt pile.

The Athlete’s Foot has stepped into a new category, now stocking activewear and performance clothing on its website.

The athletic and lifestyle footwear retailer will introduce items from 40 brands such as ASICS, Puma, Adidas, On Running, New Balance, 2XU and New Guard, as well as accessories such as socks, exercise bands, massage balls and bags.

“Apparel is a natural fit for The Athletes Foot. We have seen an undeniable increase in trends as more and more people are looking to incorporate workout and athleisure wear into their lives,” general manager of Accent Group’s performance division Steve Cohen said.

“People are looking for activewear that fits their lifestyle. I am beyond excited to add to our customer’s overall experience and can’t wait to provide people with a complete selection of products to help them keep fit and healthy.”

Parent company Accent Group purchased activewear business Stylerunner in late 2019 after it entered voluntary administration, in an effort to reach a new, predominately female audience while entering a new category.

“It was attractive to us that they had a great position with yoga wear and outerwear, and we’ve seen the wellness piece as a big growth market,” he told Inside Retail at the time.

“We think the name resonates with the consumer, and the market position it has is something we feel the market is missing at the moment.”

Agostinelli also said the business was considering Stylerunner-branded stores.

As a part of Accent Group, The Athlete’s Foot has seen significant digital investment in-store, with the brand’s MyFit3D technology launched across 140 stores in Australia and New Zealand – and is now available online through the launch of MyFit Virtual, which connects customers to a Fit Technician online.

"DJ’s performance was also adversely impacted by the failure of its private-label offering which never resonated with the Australian consumer, as well as several strategic initiatives which disrupted trade, added costs and placed pressure on its profitability."

Mistakes highlighted by the fund manager included the company's ambitious $220 million plan to refurbish its flagship Elizabeth Street store in Sydney, moving its head office from Sydney to Melbourne, and trialling a new upmarket food hall concept.

All those flops forced Woolworths to write down nearly two-thirds of its investments in David Jones, Mr Ivan said, with the company now valued at less than $1 billion.

Full-year sales at the retailer for the 2020 financial year are set to be down 8 per cent due to the impact of COVID-19 when the company reports its results later this month. Profit plunged 42 per cent last year, coming in at just $37 million.

Coronation is not the first major shareholder to criticise Woolworths' purchase and management of David Jones, with majority shareholder Allan Gray saying in June the department store had been a "very poor" investment.

The repeated writedowns on its initial investment have prompted speculation Woolworths may look to dump the department store chain. Instead, the South-African company has initiated a plan to close some of its 48 stores and sell $1 billion in property assets to reduce DJ's sizeable debt pile and cull any unprofitable stores.

One store, in Melbourne's Bourke Street, has already been sold for $121 million.

Outgoing chief executive Ian Moir said before his departure at the end of last year David Jones would focus on brand exclusivity as a way to return the company to growth and win back customers, with Woolworths pulling its Country Road Group brands out of competing retailers such as Myer and introducing 60 new brands exclusive to DJs in Australia - a strategy that is being continued under his successor, Roy Bagattini.

Online sales are also planned to become a major contributor to the group, with the company planning for online to be 20 per cent of total sales by 2025.

Mr Ivan said the plan to reduce the company's significant debt was a solid strategy and preferable to Woolworths either selling the chain entirely or injecting additional capital into the ailing business.

The fund manager said if Woolworths' plans for David Jones proved successful, the company could again become a valuable asset in its portfolio, though it is currently seen as next to worthless by investors.

"Despite department stores being under threat globally, we believe that DJ’s strategic initiatives appear sound [...] and should enable DJs to compete more effectively against online and specialist retailers," he said. "The investment in transformative projects and current strategy of right-sizing the DJ store footprint and continued investment in online is sound, and sets the business up well for the future."