Month: September 2021

Retailers Face an uncertain year

Retail Apparel Group, which has a total of 890 stores across Australia, warned that the 2022 flu season would be a disaster. It noted that the initial phase of the pandemic was largely unscathed due to the government’s support programs.

Pre-tax profits of the Retail Apparel Group rose by 38% to $62.1 million in the year ended March 2021. Despite the group’s sales falling, its profit margins grew.

Through the JobKeeper scheme, TFG, owner of Retail Apparel Group, was able to reduce employee benefits expenses 22.4 per cent in the year ended December 2016.

It reported a net gain of $1.9 million on its occupancy costs in the year ended December 31, 2019, compared to a loss of $12.8 million in the previous year.

Other expenses fell by a significant amount, which helped the company deliver a 32 per cent boost in profit. It also paid out millions in long-term bonuses to its executives.

In a warning, Gary Novis, the chief executive of Future Retail, said that 2019 would be a disaster for the industry as landlords and retailers didn’t have the necessary concessions.

In March 2020, Retail Apparel Group suffered a major setback after it was forced to close almost all of its stores due to the national lockdown. The closures impacted Melbourne and Sydney stores.

This year, many landlords were waiting for the recovery to take hold before agreeing to rent concessions.

This year, many landlords are less inclined to provide rent relief following the large payouts they made in support of the rent reduction.

Retail landlords in NSW are required to provide rental relief to their tenants, but only those with annual revenue of more than $50 million can do so.

Veronika Maine is another store that has uncertainty with it’s retail stores. Veronika Maine however, have a strong online presence. To save at the Veronika Maine sale online use a Veronika Maine promo code to save.