Popular jeweller Michael Hill closes underperforming stores as the chain suffers during the COVID-19 pandemic
- Chain jeweller Michael Hill announced the closure of underperforming stores
- Five stores in Australia, three in New Zealand and one in Canada will not reopen
- The company will reopen 100 Australian and 25 New Zealand stores tomorrow
- Michael Hill said digital sales reached above record Christmas levels from 2019
- Here’s how to help people impacted by Covid-19
Popular jewellery chain Michael Hill has closed several underperforming stores amid the coronavirus pandemic.
The company will not reopen five stores in Australia, three in New Zealand and one in Canada.
Michael Hill International shared the announcement to the Australian and New Zealand stock exchange yesterday and said: ‘Further store closures are likely across all markets, based on store performance and the outcome of landlord negotiations.’
Michael Hill announced it would close underperforming stores in Australia, New Zealand and Canada amid the COVID-19 pandemic. Pictured: A closed Michael Hill store in Brisbane
Pictured: Kim Kardashian (left) and Michael Hill (right) promoting Michael Hill jewellery
The company said it would close the stores in order to ‘eliminate non-essential expenditure and manage its cost of doing business.’
Michael Hill has yet to name the specific stores that will be closed down.
The company temporarily shut down all of its 301 stores due to the coronavirus pandemic in late March.
It announced a selection of nearly 100 Australian and 25 New Zealand stores would be reopening on Saturday, with more to follow over the coming month.
The company said they had ‘reopened an initial trial of deliberately chosen stores, with new safety protocols in place to protect our employees and customers.’
Michael Hill said they aimed to reopen all selected Australian stores by early June.
New safety measures include a heightened cleaning regime, stickers on the floor to ensure social distancing, an increased use of contactless payments and extra safety training for staff members.
Michael Hill International Limited CEO, Daniel Bracken, said: ‘As we reopen stores, we are placing the utmost importance on the safety of our employees and customers.
‘We look forward to enabling our customers to celebrate their love, style their wardrobe and find their memorable gift in a safe store environment as we all navigate through these unprecedented times.’
The company said they still anticipate ‘an ongoing impact on revenue and profitability due to the uncertainty of the economic landscape.’
Michael Hill also revealed the business experienced a strong digital trading growth amid the pandemic and online sales reached above record Christmas levels from 2019.
‘The next six months and beyond will continue to be challenging, however, we are well-placed in each market to emerge as a strong and more relevant jewellery brand,’ Mr Bracken said.
Michael Hill also announced that Mr Bracken recently underwent surgery and would take on a reduced work load over the next few weeks.
Michael Hill will reopen 100 Australian and 25 New Zealand stores tomorrow with additional safety measures. Pictured: An empty Sydney shopping centre in April