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Australia's largest footwear retailer Accent Group, which operates 503 stores, has not been immune to the economic carnage presented by COVID-19.

Social distancing measures introduced in mid-March resulted in customers abandoning specialty retailers in shopping centres in droves, resulting in store sales declines of 50% to 75%.

While Prime Minister Scott Morrison has announced leasing codes for businesses with turnover of $50 million or less, major shopping centres have been slow to respond to the seismic shift.

Accent chief digital officer MarkTeperson said shopping centres are facing an inflection point.

Whilst landlords remain hopeful traffic will return, the prolonged impacts of social distancing are likely to have a permanent impact.

"For too long, shopping centre rents, their annual increases and expectation around renewals have been fundamentally out of step with the decline in foot traffic, 4-wall comp sales, and the overwhelming shift in consumer behaviour to online.

"Combined with the recent fires and floods impacting many parts of Australia, this has contributed to a growing number of retail businesses filing for administration over the last 12 months.

"Almost every shopping centre in the country has experienced sustained foot traffic decline over the last few years. The impact of the COVID-19 pandemic will only accelerate and sustain this trend."

A recent study published by Bain, on the impact of COVID-19 on retail in China, illustrated the seismic change.

Several major retailers including Apple, Nike and Starbucks - which closed their stores during the COVID-19 lockdown - have only seen instore foot traffic return to 40% to 50% of their previous levels in the first four to six weeks after their reopening.

"This is the canary in the coal mine for Australian landlords and sets up the only logical path forward for retailers and landlords to work together – leases based on percentage of sales.

"Whilst landlords remain hopeful this once in a generation decline is a temporary shift in behaviour, the prolonged impacts of social distancing are likely to have a much deeper and more permanent impact on consumers shift to online, resulting in a permanent structural change.

"Inflection points are more than big changes. They are orders of magnitude bigger. True inflection points have far-reaching effects that change how people work, how they buy and how they live. Think the printing press, the invention of the microprocessor, the internet, music streaming and now COVID-19.

"Companies that effectively harness an inflection point can ride a wave of change to massive scale. But it is not enough to be the first to see an inflection point, you must actively accelerate the inflection. You cannot just ride the waves; you must make them."

While landlords drag their feet, Accent Group has leveraged its vast digital capability leaning into the consumer shift into digital, tripling its digital sales through April, since the COVID-19 store closures.

Teperson said Accent has responded quickly to the change.

"Accent has built a world class omnichannel capability, able to mobilise, publish and sell every piece of inventory we own across our network of 503 stores and two distribution centres, through our 18 websites.

"Combined with the ability to determine and rapidly change the routing of orders to any store or distribution centre, we can get product to customers faster and more efficiently than our competitors”.

“Throughout the shutdown, Accent was able to adapt fast to government restrictions, operating stores closed to the public as dark stores (mini distribution centres) to fulfil its orders online.

"Providing a safe environment for the Accent team, these dark stores, allow the group to access and reduce our instore inventory, while consumers continue to abandon shopping centres."

Teperson said "it’s not enough to just take advantage of inflection points, you have to accelerate those inflections if you want to achieve huge scale."

This week, Accent Group embarked on an aggressive push across media launching free to air and catchup tv, digital and social marketing for several of its brands The Athlete’s Foot, Skechers and Platypus to further lean into the consumers online purchasing trend.

With more than 35% of the group previous year’s April sales now moved to online, Accent intend to accelerate this trend and reduce its reliance on its store network.

Accent Group CEO Daniel Agostinelli said changes are afoot to further expand digitally.

"The seismic shift to digital reduces our dependence on landlords, and whilst it’s not the landlords fault, the only tenable path forward with landlords is to share the burden and adopt a model that reflects rents as a percentage of sales for the foreseeable future."

After entering a trading halt on Friday afternoon, fashion firm PAS Group has outlined restructure efforts that could see additional stores shuttered and a more pronounced focus on online.

PAS Group holds a number of brands in its stable across several parts of the fashion industry – such as Review, Black Pepper, Jets, White Runway, Yarra Trail, Marco Polo, and Bondi Bather. Across those brands, the group sells across department stores, specialty retailers, and approximately 800 independent stores.

And while the group has been impacted by the COVID-19 crisis by way of having closed its stores in Australia and New Zealand, it has also been hit by the closure of department store Myer – with which it has an exclusive partnership.

As a result, the business announced in a message to shareholders on Monday morning PAS Group will be accelerating a previously outlined review of its operations to “reduce complexity and create a more focused business”.

“The board and management are continuing to assess the potential restructuring options with the assistance of their advisors, though the precise nature and detail of the restructure has not yet been finalised,” PAS Group said.

“It is likely that the restructure will involve a further reduction of retail stores and a significantly reduced fixed cost base.”

During FY19, PAS Group exited 42 stores and signaled a desire to focus on more profitable locations and the company’s growing online presence.

It isn’t clear what this means for employees or which stores may be shuttered. Inside Retail has reached out for additional information. 

Additionally, board members and chief executive Eric Morris will forgo half of their salary and directors’ fees for the period between 1 April and 30 June. Designworks managing director Brendan Santamaria has resigned, with Morris to assume the role in addition to his regular duties.

Technology giant Apple chief executive Tim Cook has indicated some Australian stores will reopen within two weeks.

In an interview with Bloomberg following the release of the company’s second quarter results Cook said Apple is planning to reopen stores in Australia and Austria over the next few weeks, while “just a few, not a large number” of stores in the US could reopen in May. 

“The question is: When do stores reopen, when do the shelter-in-places come off, when is it comfortable to go back to working instore and have consumers come out?”, Cook told Reuters.

“Rather than pretend we can project it, we’re being very straightforward and saying we lack the visibility to do it.”

Despite the global impact of the COVID-19 virus Apple saw growth in revenue, albeit by 1 per cent, to US$58.3 billion. 

The result was primarily driven by increases in wearables, home and accessories, which rose by ~22 per cent, and services, which rose by ~16 per cent. These gains offset the falls in iPhone, Mac and iPad sales during the quarter, which fell by ~6 per cent, ~3 per cent and ~10 per cent respectively.

Sales from the Asia Pacific region landed at $3.8 billion, a 7.4 per cent increase on the prior corresponding period and around 6 per cent of total sales. 

“We’re clearly not immune to the macroeconomic environment,” Cook told Reuters. 

“I’m not sure hardly anybody is immune at this point. As compared to the last part of March and the beginning of April, we’ve seen a better second half of April.”

In the first five weeks of the second quarter Apple were growing quickly, Cook said, though this changed suddenly when COVID-19 hit China and Apple’s supply chain and regional sales.

Petbarn will offer same-day delivery in metro areas across the country by the end of this week, thanks to a partnership with the ride-sharing platform, Uber.

The delivery service will enable shoppers to order products online by 4pm and have them delivered to their doorstep that same day. Orders will be fulfilled from stock in Petbarn’s network of more than 200 stores.

The pet supplies chain is owned by Greencross Limited, which also runs the chain of veterinary clinics, Greencross Vets. The clinics are expected to offer same-day delivery on pet health products through Uber in the near future.

Since launching in Melbourne at the end of last week, the uptake has been “promising”, according to George Wahby, CEO of Petbarn and Greencross Vets.

The specialty retailer has experienced an increase in sales of pet essentials in recent weeks, as well as customers coming into stores and clinics for expert advice, according to Wahby.

He added that “zero contact” click and collect and home delivery have been popular options for online shoppers during the coronavirus pandemic.

“They utilise our network of over 200 stores and combined with our extensive product range, can get customers what they are looking for without them having to venture out of their homes,” Wahby told Inside Retail.

While Petbarn stores have remained open throughout the shutdown, Wahby acknowledged that vulnerable and elderly people may not feel comfortable, or able, to leave their homes.

As part of their delivery partnership, Petbarn and Uber are offering 20,000 free same-day deliveries to help vulnerable and elderly pet parents. Those in-need of extra support are encouraged to register for free delivery through Petbarn.com.au.

“Care is at the core of everything we do at Petbarn and we understand that many of our elderly and more vulnerable customers are feeling anxious about being able to get to the shops and these 20,000 free same day deliveries will provide much needed support during these challenging times,” Wahby said.

Through its charity arm, Petbarn has also pledged $500,000 worth of pet care relief, including 1.7 million meals, to support animal rescue groups.

“What’s really important to us at this time is supporting our adoption and welfare partners, at a time when many are struggling,” Wahby said.

Wahby noted that Petbarn has seen an increase in pet adoptions during the shutdown.

Retail consultant Mark Newman will take on the role of managing director for book retailer Dymocks’ retail and children’s charities arms, effective May 4. 

An executive with over 25 years experience in the retail industry globally, Newman worked with Hackett London and Richemont before taking the role of vice president of Ralph Lauren Australia and New Zealand in 2010. He was appointed CEO of Oroton Group in 2013, and oversaw the Oroton Brand, the launch of Brooks Brothers and the franchise of Gap. 

Newman also worked at Noni B Group as executive general manager of contemporary brands, before working as a consultant to the industry at Sincerely and Moseley & Co.

“It’s an honour to be given the opportunity to join this iconic Australian brand,” Newman said. 

“I am looking forward to working with the whole Dymocks team, franchise owners and suppliers on the next chapter in its history.”

Dymocks’ former MD Steve Cox departed in February to head up Destination NSW in February 2020.

King Living has built an engaging new way for customers to shop for its high-end furniture online in less time than it takes some people to select a new sofa.

In just three days, the retailer captured its entire Annandale showroom with a high-definition professional camera, tagged each product with additional information and hyperlinks to its e-commerce site and uploaded the content to its website, where customers can explore the space on their computer or mobile device, zoom in on individual products and see them from all angles.

The virtual showroom, which went live on Monday, is intended to replicate the experience of visiting a King Living showroom. Unlike a standard e-commerce site, which presents products individually, often against a white background with no sense of scale or movement, the virtual showroom is an immersive and interactive environment. For instance, shoppers are able to “open” storage seating.

“We just felt that the website was quite a static interaction, and to build and design that [virtual showroom] interface was a great initiative to be able to continue to offer that real life experience, but in virtual reality,” Natalie Culina, King Living’s head of global brand, told Inside Retail.

Like many retailers in discretionary categories, King Living has closed some of its bricks-and-mortar showrooms following the Federal and State governments’ orders for Australians to stay home to help stop the spread of COVID-19.

The retailer has kept most of its showrooms open with reduced trading hours, but foot traffic has been down since the social distancing restrictions were introduced, according to Culina.

“We’re always looking at new and innovative concepts,” she said. “I think the current time has just forced us to innovate more than we normally would, which has been great for us and great for our customers.”

In addition to the virtual showroom, King Living has also introduced a new digital consultation service, which allows customers to chat directly with one of the brand’s design consultants via FaceTime, WhatsApp or Google Duo.

Going forward, Culina said King Living plans to update the virtual showroom with new products as they become available and might even launch a new showroom altogether.

“It’s actually extremely cost effective to be honest with you. We have a lot of resources in-house that have expedited the process, so in terms of cost, people would be surprised, it’s not really costly at all,” she said.

The new experience also presents an opportunity to collect data on how customers are engaging with the brand online, and what’s working and what isn’t.

“As long as the demand for online remains as prevalent as it is now, that will give us the ability to test and learn and respond accordingly,” Culina said.

Retailers are reopening their doors as Australia slowly starts to lift lockdown restrictions but shopping centre landlords, uncertain about the long-term economic impact, are still tapping investors for more capital.

Charter Hall Retail REIT (CQR), a fund manager that oversees a $3.2 billion shopping centre and convenience portfolio, is the latest to initiate an equity raising, announcing on Monday it is seeking $300 million just two months after tapping investors for a $100 million capital injection.

The trust manages and owns a string of regional and suburban properties leased to Coles, Woolworths, BP, Wesfarmers and Aldi. About 51 per cent of the fund’s income comes from its major tenants.

“While the duration and economic impacts of the COVID-19 pandemic remain uncertain, the REIT’s operations are resilient,” the trust said in a statement to the ASX on Monday.

Like its retail counterpart Vicinity Centres which on Monday reopened its upmarket Emporium Melbourne shopping centre, Charter Hall Retail said many tenants that had voluntarily closed because of the pandemic were now reopening. At least 87 per cent of tenants in the group’s portfolio are open and trading, it said.

However, in a bid to strengthen its balance sheet and give it flexibility to manage the economic impact of the pandemic, the real estate trust has tapped the market for $275 million through a fully underwritten institutional placement and a further $25 million in a unit purchase plan to eligible unitholders.

The institutional placement represents about 20 per cent of the group’s units on issue prior to the equity raising and will be offered at a 7.9 per cent discount to CQR’s last close price on Friday of $3.15. The new units issued will rank equally with existing ones and be entitled to the distribution for the six months ending June 30, it said.

Macquarie Bank analysts said they remained attracted to CQR's defensive income. The analysts labelled the stock an "outperform" after having already priced in a 10 per cent equity market discount on their valuation to adjust for the risk of an equity raising.

The raising comes after the fund tapped investors for $100 million in fresh equity at $4.81 a unit on February 20.

It also follows pub landlord ALE Property, which saw most of its venues abruptly shut in March, refinancing its debt with a new $250 million facility that will roll up all its maturing debt from the 2021 financial year.

Accent Group, the parent company of retailers Platypus, Hype DC and The Athlete’s Foot, has experienced a huge rise in online sales amid the coronavirus pandemic.

It comes after the group closed its stores for four weeks amid the pandemic, beginning on March 25, while its 18 websites remained available.

The company reported a surge in its online sales, jumping from around $250,000 a day before the store closures to between $800,000 and $1.1 million a day in just the last two weeks of April. It has seen a rise in demand for shoes for essential workers – like its Sketchers range for healthcare professionals – as well as active footwear and clothes from its Stylerunner and The Athlete’s Foot websites.

Accent Group CEO Daniel Agostinelli said in a statement the company is capitalising on the massive shift to online shopping.

“It is clear that there has been a seismic and most likely enduring shift in consumer behaviour away from traditional shopping centres to shopping online,” he said. “With 18 websites and our leading digital capability, Accent Group is capitalising on this trend. We will continue to drive digital growth as the number one priority in our company.”

While the group’s stores were closed to the public, some have operated as ‘dark stores’ – essentially fulfilment centres for items bought online. As its online sales have grown, the group opened more dark stores in April. Now all of its stores are dark stores, including some in New Zealand, which are working together with the group’s distribution centres to help with online orders.

Accent Group is planning to reopen its stores by May 11 with safety protocols in place like social distancing, contactless serving and customer number limits in stores.

The company believes its rise in online sales heralds a permanent shift in consumer habits among Aussies and New Zealanders. It expects its online sales to account for more of its overall sales in the future.

But while the group plans to reopen its stores, it still expects a hit to its profits from the drop in tourism and foot traffic triggered by the coronavirus.

The group has also been negotiating with its landlords over rent and has given notice to exit 28 store leases over the next six months.

Retail rents could fall as much as 30 per cent over the next two years, driving down property values, as the pandemic shutdown accelerates the decline of the once-dominant sector.

The devastation across retail will expedite a wide-ranging reset of rents and assets that was already under way as the sector negotiates the challenges of e-commerce and softening sentiment, according to analysts.

"The current situation accelerates the de-rating of malls in line with their offshore peers, but also accelerates the rebasing of rents," Jefferies analyst Sholto Maconochie told The Australian Financial Review.

The widespread shutting down of shops through the biggest malls, with similar closures along the suburban strips and a widening rent strike by large and small retailers alike, have triggered losses for listed and private landlords.

Mr Maconochie expects rents to fall between 20 per cent and 30 per cent over 12 to 24 months. Macquarie analysts are factoring in a 15 per cent decline in rents over a longer period, with greater declines possible along with a similar write-down in values for big shopping malls.

"We think a lot of retailers won't get through. Despite the stimulus, if you were wavering before this, you're probably not going to make it. It accelerates the demise of the weaker retailers," Mr Maconochie said.

On the other side of the shutdown, a recovering retail sector will require less space, weakening the negotiating position of big landlords such as ASX-listed Westfield operator Scentre and Vicinity.

An early guide to the potential impact on landlords came this month from GPT, which revealed that it had slashed the book value of its $4.5 billion unlisted fund by 11 per cent as it readjusted its assumptions for market rental growth, restricted trading conditions and vacancy downtime.

Decades-old leasing structures based on annual increases could be jettisoned in favour of more innovative agreements based on turnover rents or through greater incentives.

Smaller high street landlords who face empty shops will capitulate as well, accepting that a lower income is better than no income.

"Eventually they'll have to meet the market. There is only so much time you can sit without rent," Mr Maconochie said

"You only have to drive down Oxford Street, King Street or Military Road in Mosman to see how many shops are closed."

No salve for landlords

The number of household retail brands cutting rent is growing by the day – from discount pharmacists such as Chemist Warehouse and Priceline, to fast food chains including Hungry Jacks and Red Rooster, to the stable of names run by Solomon Lew's Premier Investments.

The March surge in retail sales, the strongest rise on record, will prove no salve for many landlords, given much of that activity revolved around panic of items for basic needs, such as toilet paper. Owners of smaller neighbourhood malls anchored by supermarkets will benefit though.

Figures compiled by the Re-Leased platform, which manages about 40,000 commercial leases in Australia alone, show the extent of arrears already mounting in April.

By April 20, less than two-thirds of the rent due across all commercial property sectors had been received by Re-Leased’s clients, compared with the usual level of about 87 per cent, amounting to more than $100 million in unpaid rent. Retail has been the hardest hit.

"Many of those retailers were already struggling because of online shopping. This going to be a potential fatal blow for many of them," Re-Leased chief executive Tom Wallace said.

"Whenever there is an increase in vacancy, you're going to see a decrease in rents to match that."

Resolution Capital chief investment officer Andrew Parsons, who has been underweight on retail for some time, said the pandemic had "merely compressed the secular issues facing the industry".

He noted that in the UK, retail rents were coming off 40 per cent even before the onset of COVID-19.

"In every market, retail was overpriced before corona[virus]. This is the elephant in the room," he said.

"Everything was either sex or death, so I chose sex,” says Lisa Hili, explaining the two industries that had the most start-up potential back in 2011. Working at Australian Vogue, Hili was exposed to a plethora of luxury brands, but what she really wanted to do was launch one of her own.

“Even through the GFC, sex was one of those markets that was still booming because people were nesting more,” she says. “I realised there was a gap in the market for this stuff, so I put together a business plan.”

The “stuff” Hili is talking about – exquisite lingerie, luxury fragrances, and top-of-the-range sex toys – would become the basis for her luxury boutique, Porte-à-Vie (French for “door to life”). All she needed was a financial backer. By chance, she met Melissa Karlson, managing director of the investment company Wyllie Group, and daughter of Rhonda and the late multi-millionaire business tycoon, Bill Wyllie. Karlson heard through a friend at a wedding about Hili’s ambitious plan, and a business was born.

Now we are in the midst of another global crisis and Hili has proven herself right. "We've seen a huge spike in pleasure items and lingerie sales over the past couple of weeks," she says. “We’ve actually sold out of a lot of toys.” Lubricant, massage oil and even erotic colouring books have been “more popular than ever”.

Elevating the idea of sex products from the dimly lit rooms of adult shops and naughty hens' nights to a level of self care on par with day spas was no easy feat. Hili enlisted former Vogue editor Kirstie Clements to help market the e-boutique as chic and stylish, similar to luxury online retailers like Net-A-Porter.

While Clements no longer works with the brand, there are shades of her influence everywhere: the pop-up store in Sydney’s Paddington resembles a designer fashion store, if a designer fashion store catered to the bedroom. With Coco de Mer silk slips hanging alongside Agent Provocateur lingerie, (their tailored corsets retail for about $649) as the scent of Dirty Rose perfume wafts through, it’s like a little slice of Eyes Wide Shut.

Still, Australians are laid back, but they’re not that laid back – something Karlson, who specialised in corporate finance at the London School of Business, relates to. “Out of the 50, I’m about 10 shades of grey,” she laughs.

The launch, in 2017, was tricky. Hili held a party for 50 friends. There were canapes and champagne and scented candles. At first, the women gravitated towards the Agent Provocateur lingerie and luxe fragrances. “But a few drinks in,” says Karlson “and they were crowded around the toys, picking them up – just totally fascinated.”

They weren’t the only ones. As well as the pop-up shop in Paddington, Porte-à-Vie sends its range of lingerie and adult products overseas to places such as the US, Europe, Mexico and India. Its biggest seller? A pearl G-string, from Spanish fashion house Bracli, which Karlson says is a huge hit with men who buy them for their partners.

But customers are equally fascinated by the gold pendant necklace that doubles as a vibrator – another bestseller. “Businessmen are among our biggest spenders,” says Hili. But Hili and Karlson insist it’s not all about toys. “We don’t want to push anything on anyone,” says Karlson, who moved from Perth to Sydney as the business has grown. “We understand that it’s not everyone’s thing.”

At least, it didn’t used to be. But a few cultural shifts in the past decade changed that. The first was 50 Shades of Grey, the 2011 novel about sadomasochistic sex. The book set a record in the UK as the fastest-selling paperback of all time. By 2015, it had sold 125 million copies and been translated into 52 languages. Nobody could have predicted just how many women – many of them middle-aged – would be interested in reading erotic fiction.

Masturbation, too, became less of a taboo subject and was talked about more openly, especially among women, in pop culture and literature. And then the wellness industry co-opted pleasure: the final puzzle piece.

Gwyneth Paltrow’s website GOOP and Cassandra Grey – widow of Hollywood mogul Brad Grey, and founder of the ultra luxe lifestyle website Violet Grey – began to promote sex toys and accessories as if they were the latest upscale releases from a tech giant – which in a way, they are.

On goop.com, pleasure is presented in the context of wellness – a video on foam roller workouts for better sex sits alongside a list of three Paltrow-approved non-toxic lubricants. At Violet Grey, Luna Beads – for strengthening the pelvic floor – might well sit next to a Dr Barbara Sturm face mask or Augustinus Bader body cream. The emphasis is on luxury and treating yourself.

“The sex industry is on a swing from a male-centric vice industry to a female-centric wellness industry, and that's a pretty big change,” says Alexandra Fine, co-founder and CEO of Dame, a US company that produces adult toys designed by women for women. Fine’s business partner Janet Lieberman-Lu is an engineer and graduate of MIT.

“We're seeing it more openly discussed in pop culture, which helps validate and sanction products that were once shamed,” says Fine, who began her career as a sexologist. “Beyond that, the rise of technological advancements in the space have helped demonstrate that these products are just as intricate and thoughtfully made as those in any other category.”

Fine and Lieberman-Lu launched Dame in 2014, with their first product, Eva, which they were able to make through crowd-funding. “We raised $US575,000, making it the most successful sex toy crowd-funding campaign ever.”

The pair never looked back. “We sold over 10,000 vibrators, amounting to over $US1 million in revenue, within a year of meeting each other,” says Fine.

In fact, pleasure-as-wellness has become so popular that even mainstream cosmetic retailers, such as Adore Beauty, are now selling their vibrators on their websites.

“Sex products have always been a big industry – $US32 billion in the US in 2019 alone,” says Kate Morris, CEO of Adore and AFR Young Rich Lister. “The change we noticed was the rise of tasteful, luxe brands aimed at women; along with the mainstreaming of the category into beauty and wellness retailers like GOOP and Violet Grey.”

But as CEO of a website that has 2 million customers visit each month, the pivot from moisturisers to vibrators required careful planning. “We knew there was a risk of backlash if we didn’t approach this category with respect,” says Morris of the launch.

“We made very considered, conscious decisions around the types of words and imagery we would use. The principle of consent was absolutely key – customers on our website will not see any images of sex products without having first been asked if they are comfortable to proceed. And we also took a lot of time to communicate why we were doing this.”

Since the launch, late last year, Morris says there has been zero backlash. “Quite the opposite, actually. We’ve had a lot of feedback from women on how grateful they are to see a mainstream retailer normalising this category, and creating a space that is tasteful, safe and inclusive.” Since the COVID-19 restrictions were put in place in March, Adore has seen a 45.2 per cent increase in its sales in its sex category.

Which way the market expands in the next few years remains to be seen. However, one thing remains clear. “Female pleasure,” says Hili, “is now at the forefront.”

To get a sense of how much better US blue chips have done compared with the rest of the world as the global economy is ravaged by coronavirus, consider this: Nasdaq-listed stocks were briefly worth more than the main index of developed markets outside the US last week, having been worth only half as much five years ago.

This and similar extraordinary comparisons should make investors pause for thought. How sustainable is it that the biggest stock, Microsoft, is closing in on the value of the whole of London’s FTSE 100, an index that includes global giants such as Royal Dutch Shell, HSBC and Unilever?

How reasonable is it that the value of the five biggest US companies — Microsoft, Apple, Amazon, Alphabet and Facebook — is now more than five entire S&P 500 sectors? Or that those five companies make up 20 per cent of the value of the index, up from 16 per cent at the start of the year and the most since the 1970s, according to data from strategist Tim Edwards of S&P Dow Jones Indices?

Many have been warning of froth in tech stocks for years. If they are a bubble it just keeps inflating. These and other highly-profitable, fast-growing companies beat the rest of the market in the bull run. And they beat it again in the bear market.

Their success explains why the US has done so much better than other markets, too. The equally-weighted version of the S&P 500, in which Amazon and Microsoft are given the same weight as a department store or oil company, is down almost as much as European or British stocks (in dollar terms) since the market peaked in February.

What can’t go on, won’t go on. Yet there are solid reasons why the leading US companies are doing better than the pack as what could be the deepest recession since the Great Depression takes hold.

First, these companies tend not to be heavily indebted, and many are sitting on piles of cash. Microsoft, for example, held $US134bn ($212bn) of cash and short-term investments at the start of this year.

The most important investment question to ask before buying anything at the moment is whether a company can survive a deep recession. The big US growth companies can mostly answer: yes.

“Do you survive to the sunny uplands of 2021?” asks Neil Robson, head of global equities at Columbia Threadneedle. “Those large-cap tech stocks don’t have that question to face.”

Second, many of the trends exploited by these companies are being reinforced by the lockdown, such as video streaming, online working, socialising and shopping, online advertising and videogaming.

Third, a deep recession will weaken incumbents in many industries, helping the tech giants disrupt their business models. Bricks-and-mortar retailers struggling to survive will find it even harder to beat Amazon. The same goes for other businesses competing with the rise of cloud computing or new media. The Silicon Valley start-ups that nip at the heels of the big growth companies are likely to find it harder to raise cash, too, reducing the threat from new rivals.

Finally, there is the recession trade. So long as investors expect a long, drawn-out U-shaped recovery they will continue to worry about stocks sensitive to the economic cycle such as carmakers and airlines. They will prefer quality companies, with features such as low leverage and reliable earnings, that can expand whatever the economy does.

Only if that reverses does the market rotate out of the big tech and growth names and back to cheap cyclicals. Such a bet on a V-shaped recovery was briefly visible on Friday when hope for a COVID-19 cure rose and lifted bombed-out stocks such as Boeing, Halliburton and Citigroup more than 10 per cent on the day.

Even some of those who doubt the long-run prospects of the market’s leviathans think they are a good place to be for now, because of their ability to withstand recession.

“At some stage we would expect tech to be one of the casualties,” says Ian Harnett, co-founder and chief investment strategist of Absolute Strategy Research, but for now he’s positive on companies with strong cash flow. The danger he sees in the longer run is that some of the big companies may be undermined by new regulations or find that even online advertising spending is sensitive to the economy.

I’m naturally a value guy who likes unloved stocks but, right now, many of the companies that were cheap because they were struggling before the lockdown are more like call options than stocks. If there is a V-shaped rebound, they will be amazing performers as their survival prospects rise. If there isn’t, many will go to zero.

The tech giants offer the opposite bet. Rich with cash, they offer safety and a way to profit in a slow recovery. Unfortunately, much of their growth is already anticipated in the stock price.

Shoppers frantically buying food staples and office goods drove March retail turnover up to $30.04 billion, according to preliminary seasonally adjusted figures released on Wednesday.

Monthly turnover doubled for products such as toilet and tissue paper, flour, rice and pasta between February and March, while turnover for canned food, medicinal products and cleaning goods increased by more than 50 per cent.

Strength was also seen in other non-food sub-groups, for example, in electrical and hardware, where business reported an increase in sales of items related to the set-up of home offices.

The ABS said this is the strongest seasonally adjusted monthly rise ever published in the Retail Trade publication, surpassing an increase of 8.1 per cent in June 2000 when households brought forward expenditure ahead of the GST implementation.

Retail trade had risen by 0.5 per cent in February to $27.8 billion as shoppers began stocking their pantries to weather the COVID-19 storm.

A 23.5 per cent increase in the food retailing industry drove the March surge with supermarkets and grocery stores, liquor retailing, and other specialised food retailing all recording increases in demand.

The ABS said analysis of supermarket and grocery store scanner data showed monthly turnover for perishable groceries and all other groceries increased in original terms by 21.6 per cent and 35.6 per cent respectively since February.

The rise in supermarket retail turnover reached a peak in mid-March before levelling off at the end of the month.

There was however weakness in cafes, restaurants and takeaway food services, as well as clothing, footwear and personal accessory retailing and department stores.

These industries recorded strong falls in turnover as a number of factors, including regulations regarding social distancing measures, limited the ability of businesses to trade as normal.

The Australia dollar edged up to 62.94 US cents after the 1130 AEST release of the data.

“Necessity is the mother of invention.”

The truth of this old expression is being demonstrated in many areas of our lives right now, not least the use of social distancing. The pandemic has also spurred many retail innovations as businesses respond to the rapidly changing environment.

There’s some incredible innovations happening internationally and I thought I’d share some examples of customer-led innovations in case these spur ideas for retail leaders. I have drawn examples from five challenges facing retailers right now.

Communicating directly with customers via digital channels

Many retail CEOs are now communicating directly with their customers, sometimes every few days. This task is made simpler for retailers who already have a direct relationship with customers through a loyalty program, and an up-to-date digital connection, for example an active email address. A stand-out here is Loblaw in Canada, which invested significantly in its App in recent years and now has several million active users accessing their personalised specials each week. This direct digital connection with millions of its customers ensures that written and video updates from CEO Galen Weston are much more likely to reach Loblaw’s shoppers.

Increasing capacity for home deliveries of essential groceries

The pandemic has led to a sudden surge in demand for home delivery of groceries and retailers are finding it tough to keep up. Most home delivery slots are booked up weeks in advance because of capacity bottlenecks in both picking and delivery operations. One excellent Australian innovation to address this challenge has been the Woolworths’s Basics Box. Woolworths partnered with DHL and Australia Post to package up a bundle of essential groceries, delivered to the doorstep for an all-inclusive cost of $80.

By standardising the box contents, and including only ambient products, Woolworths was able to shift picking to a warehouse and deliver the box via the postal service, easing the burden on its own stores and fleet of vans. This model could be applied in other markets and could be implemented alongside the in-house operations most grocery retailers currently use to service online orders, enabling an overall increase in capacity.

Finding ways to bring forward cashflow

The situation has also generated initiatives for retailers to use digital gift to crowdfund sales in advance or co-ordinate a campaign to support team members unable to work. There are many examples of this around the world, one example being the Australian joint initiative between Carlton and United Breweries and the Australian Hotels Association, For The Love Of Your Local. Customers of local venues can buy a pint in advance and CUB will match the support by offering an additional pint.

Re-purposing under-utilised stores

Many retail and food businesses have experienced a dramatic decline in demand or even had to close their core operation for serving customers, for example walk-in cafes and restaurants. Many have responded by shifting focus to Home Delivery or Pick-Up and a few have gone even further and transitioned to selling essential groceries to their local community. An example from the UK is My Pub Shop, a site which allows pubs and other businesses to take Click & Collect orders online for basic products such as bread, milk and eggs.

Supporting team members to do the right thing

One of the positives to emerge from the crisis is an increased respect for the contribution of front-line team members in retail businesses. There have been many initiatives around the world to support store team members and keep them safe, from protective screens to temperature checks at the entrance.

A significant challenge identified early on was that approximately 20% of customer-facing workers do not have access to paid sick leave. This created a risk because it meant many workers could not afford to stay at home when they felt unwell. Many retail employers have responded by changing their policies so that team members on flexible or casual contracts will still be covered if they take sick leave. Although this created an unbudgeted cost for the retailer, this move was widely recognised as being taken in the interest of society. I hope that decisions such as this will be rewarded in the long-term by greater loyalty from both employees and customers.

In summary, I hope this sharing of a mix of low-tech and high-tech innovations inspires a few retailers to consider how their business can best respond to this crisis.

"It is reflective of our continuing focus on operating our business in a manner that protects the health and wellbeing of customers and team members, whilst supporting the government efforts to limit the spread of COVID-19 through stay-at-home directions and other social distancing measures," he said.

"Our plans for reopening our physical stores are well advanced and we look forward to welcoming customers back into stores, when it is safe to do so."

A prolonged closure period will be especially damaging for Myer, which was suffering from weak sales growth and onerous rental agreements prior to the coronavirus crisis.

Shareholders and commentators have predicted Myer could use the lockdown to expedite the shut down of a number of underperforming stores, with veteran stockpicker Geoff Wilson saying it would "make sense" for the retailer to take the opportunity to shrink its footprint.

Myer made no allusions to permanent closures in its statement on Wednesday, saying only that stores may reopen on a "staged basis" due to different restrictions and regulations across the states.

Discussions with landlords and suppliers were "ongoing", though retailers across the country may soon be better placed to negotiate with landlords following the ACCC's approval of an interim authorisation to allow merchants to collectively negotiate with landlords.

Members of the Australian Retailers Association will be permitted to share information about landlords, including details on what information they are seeking in order to provide rent relief.

"We see a clear public benefit in allowing retailers to work together in the negotiations with landlords as it will help those tenants who are experiencing financial hardship during this pandemic to reach a fair outcome," ACCC Chair Rod Sims said.

Myer has been able to rehire 2000 staff to pick online orders, which shot up 800 per cent over the Easter weekend. However, Myer has applied for the government's JobKeeper subsidy as the majority of staff will remain stood down.

"Above all else, we take this opportunity to thank our customers and team members for their continued support and loyalty to Myer during this challenging period."

Data from the Australian Bureau of Statistics showed a 10 per cent drop in department store spending through March, though overall retail sales saw their biggest one-month surge on record.

Myer shares jumped 5.6 per cent to 19¢ on Wednesday, though the company's share price is down more than 60 per cent since the beginning of the year.

Sales at Primark grew 2.2% for the 24 weeks to 29 February 2020, however the value retailer’s parent company Associated British Foods warned trading in the second half of the year would be “radically different” as a result of the coronavirus crisis. 

UK sales were 2.7% ahead of last year, partially offset wth a decline in like-for-like sales. Sales in the Eurozone were 5% ahead of last year. 

ABF chairman Michael McLintock said: ”There was Very little effect of Covid-19  on our underlying first half results but trading in our second half will be radically different.” 

The value retailer has been forced to close all of its stores under the UK government lockdown and does not trade online. It has warned that the reopening of these stores is “likely to be complex”. 

ABF has written down the value of the chain’s stock by £284m to reflect realistic pricing when stores re-open.

McLintock added: ”The rapid closure of Primark stores has presented a major challenge to the group to manage and mitigate the profit and cash flow impacts arising from the loss of sales. We have taken steps to confirm the availability of existing, and to agree new, borrowing facilities.” 

“Our assessment of ongoing concern shows that, even though this is a time of unprecedented uncertainty, the group has ample cash liquidity to deal with the likely challenges in the year ahead.” 

At the half year, the group had net cash of £801m and an undrawn, committed revolving credit facility (RCF) of £1,088m. Funds were drawn down in full on the RCF on 18 March. 

ABF did not seek a waiver for its covenant test for September 2020 but has confirmed a waiver for February 2021. The group has also been granted access to funding under the Bank of England’s Covid Corporate Financing Facility. 

As at the date of these interim results, the group had available central cash on hand of £1.5bn.

The value retailer has committed to take all product that was in production and finished, and planned for handover by 17 April. Future orders have been cancelled until further notice. 

Chief executive George Weston said: ”When we are allowed to reopen we must make our Primark stores safe for our staff and our customers, even if that means ensuring there are fewer people shopping at any one time and so accepting lower sales at least until the remaining risk is minimal. In time we can rebuild the profits. We can’t replace the people we lose. 

”At Primark we have 68,000 of our people receiving furlough payments from governments across Europe, without which we would have been forced to make most redundant. From making sales of £650m each month, since the last of our stores closed on 22 March, we have sold nothing.

”One of the world’s great clothing retailers is entirely shut. We have paid for in full, and taken delivery of, very large amounts of completed stock which we can’t sell for now and we have established a fund that will ensure everyone in a vulnerable country who worked on a Primark garment, whether completed or not, is paid for that work. And we are supporting suppliers with commitments to buy garments that are as yet unfinished. But not until shops reopen and we can place new orders, will the economic hardship that Covid-19 has caused to all those in our supply chain begin to reduce.

”I am in awe of the Primark teams for their care, good judgement and immense hard work as they have managed this crisis.”

Online sales at John Lewis have grown 84% year on year between the middle of March and 15 April, amid the coronavirus outbreak. 

Overall, John Lewis sales were down 17% year on year since the middle of March, and down 7% year on year since 26 January.

In its full-year trading update, John Lewis announced that profit before partnership bonus, tax, exceptional items and reporting standard IFRS 16 dropped by 23% year on year in the 12 months to 16 April 2020. John Lewis said this was a “weaker performance” than it had hoped for, driven by significant operating profit decline at John Lewis, which was partly offset by operating profit growth in Waitrose, and lower group costs. 

Profit before tax grew by 25% to £146.4m, as a result of an increase in “exceptional profits” driven by the reduction in pension obligations following the decision to close the defined benefit section of the pension scheme. 

Meanwhile, total revenues dropped by 1% “due to the challenging retail environment”. This drop was more pronounced at John Lewis, which experienced a decline in like-for-like sales of 1.8%, compared with 0.2% at Waitrose.

During the year the “Partnership Board” were awarded a bonus of 2%. The company said: “This was prudent and affordable and recognises the contribution made by partners working in the business today without creating risk for our future sustainability.” 

John Lewis’ debt ratio improved to 3.9 times, the lowest level since January 2014. It continues to review plans to reduce it to around three times cashflow within four years.

“I wrote to you with the highlights of last year’s financial performance when I announced the bonus decision in March", chairman Sharon White said. “With the outbreak of Covid-19, I wanted to give you the latest picture on our trading performance. I also wanted to say more about how we are supporting customers, partners, suppliers, and our communities at this time of national emergency.

“This is a time of great uncertainty and volatility and the full-year picture is impossible to predict. We are therefore looking at a range of different possible outcomes and how these might affect profits, sales and cash flow. We are confident that the future of the business is strong. Our short-term trading has though been significantly affected, principally because of the closure of all 50 John Lewis branches. John Lewis online remains open – providing essential goods and services to enable customers to live well at home – and online sales are substantially up on last year. But it has not been enough to offset the loss of shop trade. Demand at Waitrose has risen sharply but operating costs have increased too, especially as we have expanded online delivery.”

She added: “The pandemic has significantly changed the trading patterns in both brands. In Waitrose, we have seen strong sales growth up 8% year-on-year since 26 January. 

“In John Lewis, trading has been mixed. With stores closed, we have seen a significant spike in our online sales which are up 84% year-on-year since the middle of March. The highest demand has been in areas linked to working and living at home like technology and food preparation but also in looking after and entertaining our children and keeping fit. However, these are some of our less profitable lines. We are buying more Scrabble but fewer sofas. Overall, John Lewis sales are down 17% year-on-year since the middle of March, and down 7% year-on-year since 26 January.

”Our worst-case scenario for the full year assumes significant sales decline between April and June, and weak sales thereafter. Over the course of the full year, this worst-case would result in a sales decline of around 35% in John Lewis, around double the current level, while at Waitrose it would result in a more modest decline of less than 5%.”

With regards to cash and liquidity, she said: “We started the financial year with just over £900m cash and investments in the bank and with access to a further £500m of undrawn committed bank facilities. Six weeks into the crisis, we are holding broadly the same level of cash and investments. But with such unprecedented trading volatility we have a range of actions that we are ready to take to secure the financial sustainability of the partnership.

“The government has introduced a 12-month business rates holiday for England and Scotland. This will save the partnership around £135m this financial year. The government has also deferred payment of VAT until March 2021, which will help our short term cash flow.”

The board has taken a steps to preserve liquidity. These include:

• Lowering planned stock intake in line with slower trading at John Lewis.
• Reducing operating costs, including cutting back on marketing spend by close to £100m.
• Minimising capital and investment commitments: capital and investment spend for 2020/21 will be more than £200m lower than originally planned.
• Furloughing more than 14,000 Partners whose jobs are temporarily no longer supported by the business.
• Negotiating with landlords regarding rent relief, including an immediate switch to monthly from quarterly payments.
• Working with our banking partners to consider how extra flexibility can be provided, should it be needed.

In addition, the executive team, non-executive directors of the partnership board, the independent directors and White will be taking a 20% cut in pay from April, initially for three months.

On Tuesday, John Lewis Partnership confirmed that 14,000 staff have been furloughed across the business due to the coronavirus lockdown, and that they will receive full contractual pay until the end of May.

With these actions and continued close attention, White said she is “confident that we have sufficient cash to operate successfully through a broad range of potential scenarios.”

The group also revealed that it paid out £939,773 to former managing director Paula Nickolds, who exited in January. The group also confirmed an £892,362 pay packet given to Rob Collins, who had been managing director of the group’s Waitrose grocery arm until he stepped down in October. 

White added that the strategic review announced in March will now be accelerated and substantially complete by the summer. It will take account of changes in consumer behaviour to come out of the pandemic, such as a more pronounced shift to online and a desire to shop in more sustainable ways.

“The partnership has been trading for nearly a century. It has survived a world war and bombings, economic crashes and crises. Thanks to you, we shall also come through Covid-19 too and emerge stronger”, White added. 

Retail’s shift online, spurred on by social distancing measures introduced to combat COVID-19, went into overdrive during the Easter long weekend with department store Myer recording massive spikes in sales.

According to chief customer officer Geoff Ikin, overall online sales rose 800 per cent over the long weekend, with customers targeting self-care and home improvement categories.

Beauty sales rose a massive 7000 per cent on Saturday, April 11, due to the department store’s discount on beauty products, with skincare, fragrances and makeup being the main items purchased.

Additionally, intimate apparel orders rose 600 per cent, with customers targeting sleepwear, lingerie, activewear and underwear. 

Sales in home and entertainment also rose 300 per cent while childrenswear and menswear rose 140 per cent and 160 per cent respectively.

“Customer service and satisfaction is paramount to us, and our teams are working hard to ensure everyone receives their purchases as quickly as possible,” Ikin said.

“We’ve also reduced our free delivery threshold to $49 and have relaxed our returns policy to give customers peace of mind with any purchase they make over this coming period.”

To support the growing online channel, Myer has brought back 2000 staff members to assist with the surging order volume.

It isn’t clear which departments these staff members originally came from. Inside Retail has reached out to Myer for comment and clarification.

Creditors of discount department store Harris Scarfe have voted to sell the business to Spotlight Group through a deed of company arrangement.

The DOCA will result in unsecured creditors losing money while the firm’s sole secured creditor, Allegro Funds, will be paid in full.

“The Administrators have conducted extensive investigations into the security held by the secured creditor (Allegro), [and] the security was found to be valid and enforceable,” Administrator BDO said in a statement to Inside Retail. 

According to a report by the AFR, Allegro will be paid $70 million through the DOCA, while unsecured creditors will receive between 1.3 and 20.5 cents in the dollar.

Unsecured creditors are owed between $146 million and $236 million. 

The deal will see the business continue to trade under new ownership and will result in ongoing employment and supplier relations continuing, according to BDO.

However, in anticipation of its sale to Spotlight Group the retailer made 59 of its staff redundant as part of a wider restructuring. A spokesperson for receiver Deloitte said the decision wasn’t easy, but that all affected employees were paid entitlements in full. 

These redundancies were made on top of the more than 450 staff let go during Harris Scarfe’s voluntary administration when 21 stores were shuttered. 

At 99 Bikes in Bondi Junction, queues have been snaking out the door over the past few weeks.

The queues are thanks in part to physical distancing rules, but it's also because the COVID-19 lockdown has everyone going gaga for cycling as they look for new ways to get active or alternatives to public transport.

Matt Turner, son of travel entrepreneur Graham "Skroo" Turner and managing director of Pedal Group, the company behind 99 Bikes, says there has been a huge uptick in business, especially over the last four weeks.

"There's been about a 50 per cent increase across our stores, but in our city stores it would be more, so around inner Sydney, inner Melbourne, inner Brisbane," he said.

Online retailer Bicycles Online has also seen its sales figures more than double in the past two weeks. Commuter bike sales grew 210 per cent, kids bike sales were up 60 per cent and mountain bike sales surged 170 per cent.

"Sales are exceeding what we would expect to see at Christmas,” said Bicycles Online co-founder James van Rooyen.

Bikes 99 salesman Nick Johns said the last four weeks had been "non-stop".

"We've got people dusting off old bikes, we've had a lot of people who have been thinking about getting a bike for a long time who say they may as well do it now," he said.

"We've also had a lot of people spending time with their family which is really good to see, buying kids bikes. We've even had a few families come into and buy all bikes [for the whole family]."

Mr Johns said it was great that families were spending more time together and that so many people were getting active.

"They've got the choice if they want to get fat and be alcoholics or get fit and love their family, that's how I see it. Sorry I'm blunt," he said.

99 Bikes has 47 stores across the country and is jointly-owned by Flight Centre, the Turner family and employees.

The company has employed about an extra 50 staff to cope with the increased demand. Of those, about half were Flight Centre staff who had been stood down.

Mr Turner said there was strong demand across a mix of products, especially for bikes under $1200 through to trainers, which had all sold out.

"It's been challenging from a supply perspective and a people perspective. But generally I think the guys in the store are loving the extra attention from more customers and getting more people onto bikes, which is obviously why we exist."

All 99 Bikes stores were practising physical distancing and limiting the number of customers in the store at any one time. (Most states are still allowing people to cycle with the people they live with or one other person, but check any social distancing requirements as they can vary from state to state.)

Mr Turner believes the cycling surge is being driven by three reasons: transport, health and exercise and family activities.

Australian Cycle Alliance president Edward Hore said the pandemic had definitely sparked a renewed interest in cycling.

"Essentially, it's the easiest way to keep your social distance and get exercise at the same time," he said.

"It's good for your metabolism, it's good for your fitness and it's good for your mental health. There are just so many positives of going for a ride right now."

Mr Hore said fewer cars on the road also meant it was a lot safer for cyclists at the moment.

Alexander Miller, spokesman for the Bicycle Network, said data collected a few weeks ago had indicated an increase in cyclists on key commuter routes.

"We think it's a good thing to go out and ride a bike and make sure you're getting that physical activity every day, at least 30 minutes, because it's really important for physical and mental health."

Mr Turner said it was hard to know if the surge in demand would sustain, but the company was planning "as if it will be".

"We don't want to miss out on that extra demand. Worst case is we end up with too much product of the things that are in demand now," he said.

Mr Hore hopes it will lead to more cyclists on the road, as well as an appreciation of social distancing between cyclists and motorists.

"We know what a metre and a half is now... so it's obvious now we can all give each 1.5 metres safely – even on the road," he said.

Fashion designer Shona Joy opens up on an important milestone for her namesake brand - and the challenges and opportunities that lie ahead. 

This year, we celebrate the 20th anniversary of the Shona Joy brand – though not quite in the way we had imagined.

I wanted to take this opportunity to reflect and share our story - both of our recent hardship as well as the silver linings we’ve found while being forced to rapidly adapt to this new environment.

It has been devastating to watch our successful business become so vulnerable, within the blink of an eye.

In the space of just three days, we had millions of dollars’ worth of orders cancelled by some of our biggest retail partners.

Large immediate orders that had been produced specifically for our key retailers were rejected in-transit.

We received cancellation notices for forward orders on our upcoming collections that had been put into work, with materials purchased and production well underway.

We’ve been rattled by the uncertainty of how to move forward in a sensible fashion and to what extent we should be investing in future collections.

Through all this uncertainty, our small Sydney based team has pulled together (from afar) - working night and day with an overwhelming sense of loyalty and support.

While we adapt to this new way of working, we’ve made it a priority to support those who have always supported us – with many of our boutique partners having to close their doors.

We’ve done everything we can to promote our loyal stockists using our own channels, as well as offering discounts to enable their businesses to survive.

I’m so proud of how our team has found incredible strength through the tough times that have been thrust upon us all.

In the fast-paced environment of fashion there’s been hardly any time to look from above with clarity and work out which trajectory we are on.

Having this time has allowed us to pause and reflect upon the rapid growth our brand has been through in the 20 years since I began selling my designs at the Bondi Beach and Paddington Markets.

So, we’re seeing this as an opportunity to re-focus, to look within and decide what our new future will look like.

By slowing down, we can all simplify what we're about and how we can be better - we now have the time to perfect processes and be more thoughtful with our choices as we plan our next chapter.

We’ve always been passionate about working to create a more ethical and sustainable future for our industry so we’re taking this time to find ways to work more sustainably.

As an immediate action, we’ve been able to significantly decrease our use of airfreight, shifting to sea-freight wherever possible.

We’ve also been able to focus on the new product categories we’ve been developing behind the  scenes, based on the feedback of our amazing customers.

Though our supply chain has become incredibly fragile, our first ever Basics Collection is due to launch very soon along with new additions to our Wedding Edit and easy-wear styles as part of our Resort Collection.

Through all the challenges, we’ve been humbled by an undeniable sense of togetherness and unity as  our beautiful community has come together to support each other.

Today, more than ever we’re so grateful – being an Australian brand has never felt so good.