If retail stores were already hurting before Coronavirus hit, well, now most of them have sadly no hope for survival, with many having to stand down staff members to stay alive.
A prominent fashion retailer, Mosaic Brands, has become the latest victim of our unsettled economy, with announcements that they will be shutting stores and standing down staff indefinitely.
Mosiac is the parent company of popular outlets including Noni B, Rivers and Katies and has said the decision was prompted by the government’s increasingly stringent social distancing measures.
Other brands within the Mosaic stable include W.Lane, Millers, Crossroads, Autograph, Beme, and Rockmans.
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The company told investors that it would suspend all store operations from Thursday onwards as sales across Australia’s retail sector continue to steeply decline, as reported in the Sydney Morning Herald.
Mosaic has stood down 6800 staff members as the company’s 1379 outlets will close its doors. The employees will be able access leave entitlements while the company reviews what government support may be available.
“The Group will continue to communicate regularly with the team and will offer other forms of support through this difficult time and period of uncertainty, including access to its Employee Assistance Program,” a statement from the company read.
“The group has recently seen a significant drop in-store traffic and revenue, a direct result of the community’s response to the COVID-19 outbreak and the government’s social distancing recommendations,” Mosaic said in a statement.
“The group is working with its business partners and is reviewing its cost of doing business, with a view to reducing costs to match expected revenue.”
There was no specification as to how long the shutdown would go on for. However online operations will continue to operate.
The Mosaic group was badly affected by the summer bushfires as many of their stores are in regional areas.
Not The Only Ones
This follows news this week that Michael Hill jewellers announced it would also indefinitely shut its 300 stores globally due to COVID-19 crisis. They cited the main reason for the closures as it not being possible to keep doors open while complying with social distancing directives.
We expect many retailers will follow similar actions as the government introduces more strict restrictions on our movements.
Are you still heading out to the shops? Tell us in the comments below.