Diamonds may be a girl’s best friend, but possibly not for the small number of Michael Hill International (ASX, NZX: MHJ) employees told that their workplaces will remain permanently closed, even after COVID-19 subsides.
It signals a likely trend in the global retail market where retailers will be undergoing gradual re-opening of stores but will not include those underperforming. In Michael Hill’s instance, the jewellery chain expects this to be just 9 of their 301 store network globally.
News of the gradual re-openings will be well received by most, with the jewellery chain having undergone trial re-openings of 125 stores to confirm the gradual rollout will continue with a lean operating model to be adopted across Australia, New Zealand, and Canada.
Like most retailers, Michael Hill has enjoyed a surge in online sales. This has been facilitated by virtual appointments, video hubs and proactive chat tools within its online stores. Through their increased digital services, Michael Hill has also has seen memberships in their loyalty program surpass 100,000 and digital sales surpass the previous record sales from Christmas 2019.
“The surge in our digital sales signals a notable shift in consumer behaviour in the jewellery category. We have been quick to respond and harness this opportunity, with the implementation of a number of digital initiatives to continue to attract new customers and maintain the momentum,” said Michael Hill International CEO, Daniel Bracken.
“As we reopen stores, we are placing the utmost importance on the safety of our employees and customers.
“The next six months and beyond will continue to be challenging, however, we are well-placed in each market to emerge as a strong and more relevant jewellery brand.”
Bucking a trend against the wider retail industry, Michael Hill has seen strong growth in sales and profitability, highlighted by $21.4m net profit for the half year ending 31 December 2019 – a 19.6% increase on its FY19 corresponding period and driven by online sales.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
- Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
- Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
- ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
Leave a Comment
You must be logged in to post a comment.