But their online business is key for longterm success.
How are they doing.?
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But their online business is key for longterm success.
How are they doing.?
From the recent interim report
- Investment in this area has seen digital sales increase to over 15% of total Group sales for the six month period
- From 4 April 2020 New Zealand web stores for both brands were opened to sell essential product and from 28 April 2020 when the alert level was changed to 3, all product is now available for contactless delivery from our web stores.
So its not inconceivable that more than 15%(double say 30%?)of revenue could be maintained during the level 3 lockdown and with things back to normal in a couple of days IF sales aren't impacted by anything more than closure - it may not be too bad. But of course that is an unlikely assumption, peoples buying power has been reduced , but I wonder if, more importantly, their continuing desire to consume has been questioned.
Probably not though huh? So back to normal in a jiffy? (Sounding like w69 here)
Can't imagine their main clientele (young ladies) not wanting to buy.
However there will be a lot of jobs gone in travel/entertainment, training etc.
LOL I actually had to check the username before I read the bit in brackets.
Personally I have a reduced desire to spend, after seeing how little is on the credit card for the last month or so (possibly in part due to a desire to free up as much powder as possible for stock bargains mind). How long that sentiment lasts though is the question.
In short term I think we shall see a "revenge buying" happening in the malls. With the govt wage subsidies, they still getting income, while got nowhere to spend in the past 8 weeks. With the reopening of the stores and malls, sure this weekend will gone be a mid-year Christmas.
Then we also have to think about the spending habit of young ones these days. Who actually still save money? Probably only saving the will have is in the KiwiSaver, when they are "focused" to save. Everywhere is promoting the concept of living on credit. Think of the exponential growth of AfterPay in recent years (or months).
HLG target customers way of shopping has already been shifted to online shopping prior to the Wuhan virus, and now this habit has further been deepen. Future growth of the group will be heavily looking towards online and super fast fashion (clothes that last less than one season.) Reducing the footprint of floor areas, reducing front staffs, then recycling the funds to online promotion, e-commerce stores, fulfil. Think of online shopping platforms, such as Farfetch (luxury brands), as well as Zara, Uniqlo. Online is the way to grow. Brick and mortar stores will be a place for experience, then actually generating sales. That's my 5cents opinion. Thank you.
The male models in Hallensteins emails never seem to be very happy about life
There's some focus on the negative environment of lost jobs, reduced income, purse tightening, anxiety around going to malls etc.
But OTOH there are actually a lot of people who've continued to get paid though the lockdown and yet unable to spend. Many of my friends claim to have fat wallets from being stuck at home. Some are actually quite desperate to go buy new clothes, after 4 weeks of binging Netflix in their PJ's — they no longer fit last winters jeans! My wife has some younger friends too (mid-20s) and they often seem to have 'mystery-money' when it comes to needing new clothes.. seeking a new job? New clothes. Working hard? New clothes. Winter? New clothes. Got fat? New clothes. Got skinny... you get the idea.
Less than two months into what is likely to be many years of economic hardship, unemployment among the young is soaring. Benefit data from the Ministry of Social Development show that the number of 18-19 year olds claiming a jobseeker-workready benefit shot up 46.1 per cent for 18-19 year olds, 61.6 per cent for 20-24 year olds, and 58.2 per cent for 25-29 year olds between the end of February and April.
There are now 53,000 New Zealanders between the ages of 18 and 30 on jobseeker, almost more than the number of claimants from all other age groups combined. That figure will surely increase when the wage subsidy begins to expire for businesses in coming weeks.
https://www.stuff.co.nz/national/300...re-on-the-line
has to affect sales surely