Mosaic eyes 250 store closures as landlords refuse to cut rents
Mosaic Brands has warned that it could close another 250 stores this financial year.
The retailer of brands such as Noni B, Millers, Crossroads, Katies and Rivers, said it had already shut 73 during the first quarter āon response to unrealistic rental requests and a permanent shift towards online purchasesā.
Chief executive Scott Evans told shareholders at the companyās annual general meeting, that online sales for the first quarter had increased 31 per cent. This had contributed to margin growth and a 50 per cent drop in inventory holdings.
āWe are encouraged that a number of landlords have, in recent weeks, come to the table on rental reductions, but not all have and we expect up to a further 250 store closures by June 2021,ā Evans said.
Chairman Richard Falconi said customers had wanted to visit the stores but couldnāt. He said that was for the best.
You might like
āWith most lockdowns now lifted, we are confident those customers will stir from their hibernation and resume visiting our loyalty brands. Exactly when they will have the confidence to return in-store is still unknown,ā he said.
Mosaic expects to return to profit in 2021.
Ā
Ā
Want to see more stories from InDaily Qld in your Google search results?
- Click here to set InDaily Qld as a preferred source.
- Tick the box next to "InDaily Qld". That's it.
