Where next following Myer’s latest Covid-19 business update?
We examine the implications of Myer’s latest 'Covid-19 Business Update.'
Iconic Australian retailer Myer (MYR) today announced that from 27 May onwards, it would be reopening all bar one of its retail stores. Myer had previously trialled a staggered approach to reopening its store network, reopening 24 of its stores in recent weeks.
The only store that would not be reopening from 27 May onwards is Myer's Karrinyup store, due to refurbishment works being completed. The Karrinyup store is set to reopen on 30 May.
Speaking of some the changes that will be put in place as part of this reopening plan, the company said:
'All stores will operate in a manner that protects the health and wellbeing of customers and team members, with enhanced Saftey and cleaning measures. These enhanced measures include increased frequency of cleaning, protective items such as hand sanitiser stations, social distancing and contactless payments.’
Looking forward, the company further noted that it would continue monitoring Covid-19 related developments as well as continue to take on board the advice from state and federal governments.
'The health and wellbeing of Myer customers, team members, their families and the broader communities in which Myer operates remains our absolute priority, and Myer is fully supportive of the continuing government and community efforts to prevent the spread of COVID-19,' the company said.
Myer share price rises, though remains well off recent highs
The response from investors to today’s announcement was a decisively optimistic one, with the Myer share price finishing out the session 7.41% higher, at 29 cents per share.
For reference, at its 52-week low MYR traded at just 8.3 cents.
The company further noted – without quantifying – that during the recent period of store closures its online businesses had performed strongly.
Mind you, though Myer has struggled overall as a result of the coronavirus pandemic, other retailers, such as online-only diversified retailer Kogan (KGN) has actually thrived.
For example, as part of Kogan’s recent business update covering the April month and on a year-over-year basis, the company saw:
- Gross sales rise by more than 100%
- Gross profits rise by more than 150%
- Active customers hit 1,948,000
'The Company continues to invest heavily in building its brand and growing Active Customers - as a result April recorded the Company's largest ever monthly marketing expense.’
Marketing expense or not, over the last month the Kogan (KGN) share price has risen over 30%, and in the last three months, close to 80%.
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