Shareholders happy to see ASX retailers reopen their doors
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AuMake rose 16 per cent while Myer rose 17 per cent. The latter stock continued on from a late surge on Friday afternoon as the Morrison government unveiled its plans to gradually reopen the Australian economy.
While Accent Group (ASX:AX1) only rose 1 per cent this morning, it has gained over 30 per cent in the last two weeks.
The immediate future appears bright. Sales continued online while stores remain closed, but shoppers appear anxious to get back.
Social media images over the weekend showed shoppers moving enmasse to major malls, such as Melbourne’s Chadstone Shopping Centre.
— Simon Shirley (@simonshirley72) May 9, 2020
Despite concerns on social media about social distancing, retailers said they’re doing the best they can.
Accent Group promised a fortnight ago that when it reopened it would adhere to social distancing measures already in place and would implement new measures including disposable try on socks, contactless payments and customer capacity payments.
AuMake promised it would enforce customer capacity limits and use protective items such as hand sanitiser.
While AuMake will be without one of its key demographics, daigou tourist groups, for some time yet, the company said this morning it was optimistic about its future with these consumers.
For now it is selling to them through its Broadway Online platform. It noted the total online gross margin spiked over 80 per cent over the last six weeks.
Despite this, AuMake is eagerly awaiting the day when travel bans will be lifted.
The company noted a spike in domestic travel in China and responded to speculation that the Morrison government may allow certain foreign students to be exempt from the travel ban, saying it will materially improve the company’s revenue profile.
“The company remains entirely committed to the Asian tourism industry and is working closely with its tourism network in China to ensure that the business is positioned to benefit from the exciting growth opportunities that will be available with the eventual return of Asian tourists to Australia and New Zealand,” AuMake said.