COVID-19 has forced people needing hair care to DIY; and that’s been great news for Shaver Shop
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Many retailers have struggled throughout the COVID-19 pandemic but Shaver Shop (ASX:SSG) isn’t one of them.
As its name suggests the company sells personal care products such as shavers and hair stylers.
Since it last gave an update in late March, the specialty retailer of grooming and beauty products has seen its total sales rise 32 per cent despite foot traffic in its stores — the majority of which remained open — plunging 50 per cent.
But even better, it also reported online sales nearly quadrupled – rising 387 per cent between April 1 and May 10.
CEO Cameron Fox attributed this result to the company’s investments in its digital capabilities as well as the increased demand for personal grooming products.
With many hairdressers being forced to close and the rest having to scale back operations; many people desperate for haircuts had to take matters into their own hands.
“As we have seen in previous economic downturns, our business is proving to be highly resilient as customers turn to Shaver Shop for their DIY grooming and personal care needs,” Fox added.
Shares gained 36 per cent this morning and are up over 150 per cent from their March 24 low.
Despite the pleasing result and being in a “net cash” position, the company said significant uncertainty remained.
While COVID-19 cases and deaths have remained relatively low in Australia, the economy has still copped a hit.
At the time of publication, Australian unemployment figures were imminent – this is expected to rise to 8.2 per cent in April and economists see the jobs market being weak for some time yet, which could hit consumer spending.