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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

'Suitcase trade' stalled

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

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

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

Blackmores shares closed on Friday at $89.44.

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

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

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

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

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

LNG demand concerns

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Looking ahead

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

That’s the rollable TV from LG. With the press of a button, it disappears into a relatively small rectangular box.

But the LG Signature OLED TV R, as it’s officially known, is more than just novel trickery – it’s a unique, impressive approach to new TV design. It was unveiled at last year’s big annual tech expo, CES 2019, and this year, we may finally know the price: The futuristic TV starts at a whopping $US60,000 for a 65-inch model.

LG has yet to put an official price on its rollable OLED TVs, but the company’s head of global marketing for home entertainment, JS Lee, told CNET the price tag. (We asked LG ourselves to confirm the US price, and we’ll update this post if we hear back.)

Here’s everything else we know so far about LG’s amazing rollable TV.

The LG Signature OLED TV R is the next step in the evolution of its “Signature” edition TVs, as LG is announcing for the first time a consumer version of the rollable TV concept.

LG’s Signature series boasts 4K Ultra HD / HDR capability that’s as good or better than the competition, and it does it on an OLED screen that’s less than a quarter-inch thick.

With the LG Signature OLED TV R, LG is putting that capability into a 65-inch screen that rolls into a relatively slim, attractive piece of furniture when you’re not using it.

The idea is simple and logical: To hide the massive black rectangles – screens – that are prevalent in the modern home.

LG’s solution is to roll it into an austere rectangular box that’s easily mistaken for modernist furniture.

One benefit of the design of LG’s rollable TV is that it can be used in more ways than a standard TV. In “Line” mode, it’s got a dedicated user interface that enables music playback and conveys information like time and weather. You can even use the built-in Amazon Alexa assistant to command it with your voice.

Better still: Even when the display is all the way closed, the soundbar built into the base can be used as a speaker. And for you audio-heads out there, LG describes the soundbar as a, “4.2-channel, 100W front-firing Dolby Atmos audio system.”

LG has yet to officially announce the price of the rollable LG Signature OLED TV R, but LG’s head of global marketing for home entertainment, JS Lee, told CNET it would start at $US60,000.

By comparison, the LG Signature OLED TV W8 is currently available in both 65-inch and 77-inch models, and both are so-called “Wallpaper” televisions that don’t roll up. That line of TVs starts at around $US7,000.

The big difference here is that the LG Signature OLED TV R rolls up into a stylish little rectangle, and that difference apparently costs a ton of money.

That it’s essentially a TV stand, TV, and soundbar all-in-one is sure to add a few more dollars to the bottom line, but the bulk of the price difference is assuredly due to its rollable gimmick.

It’s not clear exactly when these will go up for sale, but they’re part of the 2020 line-up from LG and are expected to become available to consumers in the second or third quarter of this year.

Retail spending is expected to pick up in 2020, but only if consumers regain confidence in the economy and spend rather than save.

Despite record low interest rates, billions of dollars in government stimulus and signs of recovery in the housing market, retail sales grew in 2019 at the slowest pace since the global financial crisis as consumers took advantage of low rates and tax rebates to pay down debt rather than open their wallets.

However, analysts expect consumers to loosen the purse strings somewhat in 2020 if house prices continue to rise and interest rates fall further.

The one caveat is consumer confidence, which deteriorated through 2019 as economic growth stalled.

The Australian Retailers Association expects retail sales to rise between 2.4 and 2.6 per cent over the next 12 months, while Deloitte expects spending to grow 2.6 per cent.

While that's an improvement on 2019, it's well below the long-term average of 3.8 per cent and highlights the pressure on listed retailers to find profitable sources of growth.

"We're positive [about 2020] on the basis that house prices have turned the corner, interest rates are very low, fiscal stimulus is being handed out – all those things are ingredients for a better retail sales environment," says Citigroup's head of research, Craig Woolford.

"We know people have more money but they've chosen to save it rather than spend it," Woolford adds, pointing to a 6 per cent fall in credit card balances in the four months to October.

He believes interest rate cuts spooked consumers about the strength of the economy, but if house prices continue to rise and the job market remains stable, confidence will gradually return and the savings rate will decline.

"If house prices don't rise during 2020 there's definitely a risk to retail spending," he says.

Citigroup's top retail picks for 2020 are companies exposed to a rebound in discretionary spending, led by Super Retail Group, which owns Supercheap Auto, Macpac, Rebel and BCF.

"The stock has not rerated to the same extent as other discretionary retailers," Woolford says.

Citi also has buy recommendations on Accent Group, Baby Bunting, Beacon Lighting, Lovisa, Michael Hill and Nick Scali.

Woolford says the food and grocery market is becoming more rational, but Citi is restricted on Woolworths and neutral on Coles, saying its shares are fully priced after rising 32 per cent in 2019.

UBS retail analyst Ben Gilbert is also more hopeful about the outlook for consumer spending and hence consumer stocks this year, citing a survey that found spending intentions have improved as household wealth has risen.

"House prices have started to rise again – we believe this has translated into expectations of improving household wealth over the next 12 months," Gilbert says.

However, after a 27 per cent increase in the discretionary retail index in 2019 and a 22 per cent increase in the consumer staples index, value will be hard to find.

UBS has a sell rating on Coles, which is facing rising costs and earnings risk and needs to step up investments in supply chain and technology, and is neutral on Metcash and Woolworths.

UBS' top picks among smaller retailers include Myer, Super Retail Group, Adairs and Premier Investments (mainly because of the growth potential of its Smiggle brand).

If you’re interested in all things fashion but don’t engage with the resale market, this statistic will make you sit up straight: second-hand clothing was a $35 billion business in 2018, according to retail-analytics firm GlobalData.

And it’s growing quickly. By 2028, GlobalData says the fashion-resale market will have almost tripled in size to $93 billion, making it 1.5 times bigger than its opposite number, the so-called ‘fast fashion’ industry.

Already, consumers seem to be cooling on long-dominant fast-fashion retailers such as H&M and Zara, which encourage shoppers to buy cheap, buy often and discard regularly. Earlier this year, H&M announced the closure of 160 stores worldwide after accumulating more than $6 billion in unsold inventory in 2018.

Instead, many shoppers are turning to high-quality pre-owned fashion. GlobalData says the fashion-resale market grew 21 times faster than the broader fashion-retail market over the past three years, thanks largely to online sales platforms.

“Consumers of all ages are becoming more conscious of the ethical issues surrounding fast fashion and the fashion industry more generally,” says Millennial tech entrepreneur Hannon Comazzetto. After all, “When you pick up a T-shirt for $5, there are reasons why it’s that cheap.”

So how does AirRobe protect its users from scams? “We have an escrow payment solution,” explains Comazzetto. “As a buyer, your money doesn’t get sent to the vendor until you’ve received the item. You can click a button and say: ‘Something isn’t right here’ and send it back to us.”

Items on AirRobe tends to cost between 50 per cent and 70 per cent of their original retail price – affordable enough to attract a wide range of buyers, but still significantly more expensive than the fast-fashion alternative. Comazzetto says it’s a price that a growing number of consumers are willing to pay to be environmentally and ethically responsible.

The reason we have been successful is because we have created a community of sustainability-conscious, like-minded individuals.

— Matthew Preisz, KOT-J

Her bricks-and-mortar counterparts concur. “A significant proportion of our customers are conscious about the environment and sustainable fashion,” says Hugh Barton, store manager for Melbourne luxury reseller Bruce. “Those priorities are motivating them as much as pricing. We’ve seen a massive increase in people wanting to buy recycled leathers and recycled shoes, for example.”

Bruce, which has two physical stores in Melbourne, deals exclusively in top-tier designer and luxury brands, including avant-garde labels, and only accepts items in ‘as-new’ condition. Its stock is priced accordingly: on a recent visit to the Fitzroy store, Life & Leisure saw an Issey Miyake jacket-and-skirt set made from textured ‘egg carton’ polyester fabric for $1400; a Yohji Yamamoto three-piece suit for $880; and a Paul Harnden linen coat for $1550.

Many of the uncommon designers that Bruce stocks used to be sold brand-new at Assin, a luxury-retail institution that had two outlets in Melbourne and a third in Sydney. Assin closed for good in 2017 – at the time, its owners cited increased competition from e-commerce.

Barton says Bruce has prevailed in large part because of his clients’ desire to buy sustainably. In addition, he says, the resale ecosystem gives those consumers who prize individuality a chance to purchase rare and past-season items by the designers they love. High prices do not seem to be a deterrent.

“We recently received some Maison Margiela pieces from 2005, which we featured on our social media accounts, and they had a great response,” he says. “People know and understand the story about that particular collection – it’s iconic. They came in-store to see it, whether or not they bought a piece.”

Matthew Preisz, who co-owns the Sydney bricks-and-mortar reseller KOT-J (formerly King of the Jungle) in Newtown, says the scarcity of many of the items he stocks is a drawcard for his customers. “Our store is recommended to them as a bastion of the labels they love and don’t see enough of in Sydney.”

On a recent visit to KOT-J, those scarce luxury labels included Comme des Garçons (a black linen dress from 2008, for $650); the now-defunct Japanese brand Number (N)ine (camouflage pants from 2004, for $570); and Boris Bidjan Saberi (a boiled-wool zip hoodie from 2010, for $485).

Preisz says foot traffic in the store “has completely exceeded our expectations” since KOT-J opened in 2018. “We feel the reason KOT-J has been successful so far is because we have created a community of sustainability-conscious, like-minded individuals.” Recent customers have included high-schoolers, stylish Baby Boomers, drag queens and more besides, he says.

“A gentleman walking past in a business suit might do a double-take when he spots our shelf of cult Rick Owens sneakers,” Preisz says. “Or a stylish mum with kids and dogs in tow will stop by to tell us stories of her past career as a stylist or design assistant for some of the very labels we have in store.”

Preisz nominates accessibility as another reason he believes the resale market will continue to grow. He points out that many consumers find walking into traditional luxury boutiques intimidating.

“Luxury fashion is inherently elitist,” he says. “The barrier to entry is far from just financial for many consumers.”

Deloitte told employees that 440 jobs would be lost and 21 stores closed. AAP

The decision was announced to employees on Monday.

"We have continued to trade the business since our appointment, and this has been well supported by loyal employees and customers," Deloitte Restructuring Services partner Vaughan Strawbridge said.

"So this has been a difficult decision, but one necessary to position the Harris Scarfe business for a successful sale and continued operation."

Mr Strawbridge and fellow Deloitte partners Kathryn Evans and Tim Norman said 44 stores would remain in the Harris Scarfe portfolio for sale – five more than initially anticipated.

Just a month earlier, the previous owner Greenlit Brands agreed to sell Harris Scarfe, Best & Less and Postie Plus to private equity firm Allegro Funds.

The sale allowed Greenlit to focus on its more profitable brands like Freedom, Fantastic Furniture, Snooze and Plush.

Yet shortly after the deal settled on December 2, Allegro realised the loss-making Harris Scarfe could not continue as a stand-alone business without major restructuring.

The private equity firm appointed BDO's Andrew Sallway and Duncan Clubb as voluntary administrators on December 11. They later that day named Deloitte Restructuring Services as the receivers.

At the time, the union representing Harris Scarfe employees, the Shop Distributive and Allied Employees Association, said it planned to file a dispute with the Fair Work Commission over the decision.

'Employees pay the price'

On Monday, SDA secretary Josh Peak said the development saddened him.

"Let there be no mistake, the events of today are built on the decisions of the past," he said. "Unfortunately, the ones who have to pay the price for these poor decisions are not the decision-makers, but the retail employees – and the families they support – who will find themselves out of a job this year.

"The SDA’s top priority is to ensure that all entitlements are honoured and paid out to all employees who will be out of a job next month."

This is not the first time the retail chain had struggled. In 2001, when the company was listed on the ASX, Harris Scarfe collapsed under $160 million of debt.

The controlling Trescowthick family lost $31.5 million in the ordeal, which also saw chairman Adam Trescowthick face several charges which Commonwealth prosecutors later dropped.

The label’s early push into swimwear helped accelerate its expansion into overseas markets. Zimmermann is a feature each year at New York Fashion Week and has used the city as the base for its American expansion.

It sells its garments through the retail stores as well as online and wholesale.

While many Australian fashion labels have struggled in recent years, with big names including Karen Millen, Metalicus and Sambag collapsing, luxury brands have fared better. Late last year, European luxury giant LVMH acquired Tiffany & Co in a deal worth more than $23 billion.

Zimmermann will be the second luxury fashion brand to test market appetite in the past 12 months. The owner of RM Williams, L Catterton, has been running a sale process for the Australian bookmaker since May last year.

Dave Tanner just pulled off a "Triple Lindy", the infamously implausible dive executed by Rodney Dangerfield’s character in the 1986 comedy Back to School that utilised all three platforms and appeared – at least in slow motion – to go on forever.

While heading the special situations team at California-based Oaktree Capital Management, Tanner spearheaded a move that has played out over six-plus years: buy into beaten-down surf company Billabong International; buy into rival Quiksilver, force a distress for control taking it into Chapter 11 Bankruptcy, and turn the company around; then take control of ASX-listed Billabong, which nearly didn’t happen, and try to integrate the two fierce rivals.

Tanner admits it’s not been an easy road to integration given the group's operations span 26 countries, nearly 600 retail doors, 300 shop-in-shops, and has nearly 10,000 staff on its books.

The company recently built a new sourcing hub in Hong Kong that serves all the brands in the region, and pushed every brand and region from the Billabong side onto one cloud-based e-commerce platform.

Tanner boasts Boardriders is well on its way to reaching its initial goal of extracting $US90 million of synergies, and he has a fresh target of $US106 million – just as well, given the total cost of the integration has climbed to $US120 million from about $US100 million.

Of the 4000-odd Billabong staff, about 300 have exited since the takeover.

Described as “smart, shrewd and focused” by one industry source, Tanner says there is a future for all these iconic brands, despite the historical under-investment.

“The thesis has always been to take these brands that have really incredible global platforms, pretty strong equities that had been underserved by the operational backend of the business, underserved by the capital structures, underserved by the operational discipline within the businesses and to bring them together to create a truly global platform that serves the brands and that keeps the brand identity and the creativity going,” he says.

With about 30 per cent of its integration to play out it's far from an easy paddle, especially with obstacles such as navigating the recent cyber attack on its internal systems. According to Stab Magazine, the cyber attack likely started in Australia with a virus-laden email, which spread throughout the company.

Tanner says no customer data was compromised but it was just one more distraction.

“We want to start moving sooner rather than later on reinvesting some of those gains back into the business."

The sale of Billabong to Oaktree kicked off a flurry of deals in the surf space. Rip Curl founders finally sold to Kathmandu in October, while Nike offloaded surf brand Hurley to Bluestar Alliance LLC. In April, Volcom was sold by Kering to Authentic Brands Group.

Aussie Peter Townend, the first world professional surfing champion in 1976, has built a 40-year career in brand development and now consults in the surf and skate industries.

Townend warned that while consolidation in the $US11 billion global board sports market is the "way things are heading", possible cannibalisation of design and product can be a “dangerous thing”.

“How can you really keep a clear separation when you have executives of each walking past each other every day?" says Townend, who was also the first athlete sponsored by Quiksilver.

"The athletes – which are important and a key part of the culture – are coming through the door past the competition. How can that not have an effect?”

Townend does, however, give Tanner credit for keeping the surf teams high profile. "Both surf teams are legit.”

Boardriders remains the highest supporter of athletes, spending tens of millions every year on team members including Quiksilver Pro France 2019 winner Jeremy Flores (Quiksilver) and six-time world champion surfer Stephanie Gilmore (Roxy).

Tanner says the athletes are a key part of keeping the brands front and centre of its core market. But so are boardshort collaborations with bands such as Metallica and Foo Fighters, which line the hall at Burleigh Heads HQ.

This world of boardshorts and the search for the perfect wave is a long way from the US Air Force Academy in Colorado, where Tanner attended as an undergraduate and later trained to be a pilot.

He spent seven years in active duty which included a one-year deployment to Iraq, where he mostly flew C-141 and C-5 aircraft. He visited Australia to "decompress" after his tour.

Post-military he worked in consulting at McKinsey & Co, and had a stint in US politics working at non-profit The Democracy Alliance.

Tanner is clear that the skills obtained in the military – resilience, ability to adapt, working under pressure, communication, the rigour put into every task – is not only handy in trying to run and merge a global business, but also in everyday life.

He is an early riser, waking up at 4.30am most days. He doesn’t surf but goes for a run, and uses that military discipline when travelling. He drinks a long black twice a day, and often enjoys a neat tequila or bourbon at night.

Olympic history

The inclusion of surfing in the 2020 Olympics in Tokyo will expose more people to surf culture at one time than any previous event. It will not mean much for surfing nations like Brazil, Australia and the US, but it will open up the sport to Africa and China.

Bob Mignogna, the former publisher of Surfing Magazine and former director-general of the ISA (the global body governing the sport within the Olympic Movement), says the inclusion in the Olympics will do more for the image of surfing and surfers than any other accomplishment.

“The Olympics will provide global distribution of a live TV audience in the billions, watched by people in every one of the 220 nations in the world recognised by the IOC,” he says. "Being in the Olympics has meant that National Olympic Committees are required to fund the development of the sport in their country.”

Tanner, North and Healy agree that Olympic surfing is a win for the sport, but it's also gaining exposure via Kelly Slater's Surf Ranch and Spanish technology Wavegarden, used in URBNSURF's Melbourne wave pool.

"Wave Pools is just part of the evolution of the sport that we needed to have," Healy says.

North says stand-up paddle boarding has also broadened the participation rate, while more people are looking to take active holidays.

Tanner says the company is pushing into new categories as part of its growth strategy, with a big focus on technical gear and building innovation to meet customer demands.

The Billabong Adventure Division will offer technical winter jackets, base layers, and products that have technical features like breathability or water-repellent features. Roxy Snow for women is another growth avenue.

“Roxy is a great-performing brand, it has lots of legs as the only women-focused action sports brand out there,” Tanner says.

Healy says Quiksilver Womens is also an untapped market. Quiksilver went into womenswear half a dozen years ago, but exited despite turning over $50 million in sales per year.

“We have done our research and it resonates with the female, we think it’s a significant opportunity to make Quiksilver play with both genders as we see the success of Billabong,” says Healy.

One well-placed industry source says that given strong leadership has been appointed all appears to be going well in the short term, and Boardriders is poised to achieve the projected cost reductions.

“Billabong’s position in the marketplace appears to be strong and gaining, while Quiksilver appears to be improving reputation-wise, although it has a ways to go to be close to its former prestigious self,” he says.

“The key to the business is their distribution strategy, especially within company-owned stores. What will be the growth of Boardriders-branded stores and will they carry all products? What about the individual brands’ stores – will they cross-sell Quik in Billabong stores and vice versa?"

The source says once all the cost savings are realised, the top-line sales and profits must start growing.

“The jury is out, but it appears they are headed in a good direction … for now,” he says.

As for Tanner and his Triple Lindy, he hopes it all pays off. (Tanner owns about 3 to 4 per cent of Boardriders). He won't say what is next for himself, but Oaktree is not a long-term owner of the business so eventually a public float or trade sale will be on deck.

"Life has a way of working out and right now I love what I'm doing, and our job is not done, so we'll see what happens," Tanner says.