Melbourne stage 4 restrictions: More ASX small caps reveal what it means for them
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Over the week, a clear picture has been emerging from the ASX small caps retail scene in light of Melbourne’s stage-four restrictions.
But both said they were still open for business online, and regional Victorian stores were still open.
CEO Glen Robinson said he still expected customers during lockdowns, pointing to trade customers completing projects or residential customers requiring emergency electrical works as examples.
Despite this morning’s news both stocks saw modest rises at market open.
Baby Bunting (ASX:BBN) came out earlier this week and said it would remain open.
Motorcycle Holdings (ASX:MTO), meanwhile, will only remain open to fulfil online orders.
While the company noted that stores in other states continued to see strong trading, it expected Victoria’s restrictions to deliver a $9m financial hit in the next six weeks.
The pandemic has been a blessing in disguise for companies that only have an online presence.
The ASX’s largest purely online play, Kogan (ASX:KGN), has gained another 14 per cent this week and is close to becoming a $2bn company, having been a little over a third of that in early January.
One of the ASX’s smaller retail plays, Harris Technology (ASX:HT8), has been a beneficiary too, particularly in light of Melbourne’s mandatory mask order.
Responding to a price query from the ASX yesterday it confirmed it was witnessing strong demand.
After sitting below 1c earlier this year, Harris Technology shares have climbed to 11.5c.