David Jones on the brink: Department store's sales take a major hit as coronavirus takes its toll
- David Jones sales profits have fallen by almost 20 per cent in just four weeks
- Retailer saw 'significant' reduction in foot traffic since coronavirus outbreak
- The sales slump comes after months of struggle for Australia's retail sector
Department store David Jones has taken another hit with its sales falling by almost 20 per cent amid the coronavirus pandemic.
The retail giant's parent company, Woolworths Holdings, reported a 'significant' reduction in foot traffic throughout March as social distancing measures were ramped up as the infection rate increased.
This resulted in a 19 per cent drop in sales in the four weeks to the end of March compared to the same time last year, despite online sales increasing 108 per cent.
David Jones' half-year profit took a nosedive by more than 50 per cent to $20million in the second half of 2019.
Department store David Jones (pictured) has taken another hit with its sales profits tipped to fall more than 20 per cent in full year earnings amid the coronavirus pandemic
The retail giant's parent company, Woolworths Holdings, reported a 'significant' reduction in foot traffic throughout March (Pictured: Two people wearing protective face masks ride an escalator in Sydney's QVB)
However, the company has vowed to continue to trade, despite mounting pressure to follow rival Myer and close its stores, The Australian reported.
Its Barangaroo store in Sydney and James Street in Brisbane are the only ones to close with staff redeployed.
'We continue to see a drop in footfall across the store portfolio and are focused on stimulating trade, reducing inventory and generating cash,' the company said in a statement to investors.
Brands which are also under the Woolworths Holdings umbrella, including Country Road, Witchery, Trenery, Mimco and Politix, reported even bigger falls in recent weeks amid the pandemic with sales down 60 per cent.
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The Country Road Group closed all 280 stores last week and stood down 5,000 employees for at least four weeks.
'The closure of stores means that our retail employees will be stood down during this period, in line with Australian workplace laws. However, the federal government JobKeeper wage subsidy program will provide some relief.'
The coronavirus pandemic has brought the economy to a crashing halt with thousands of workers stood down across the country thanks to strict social distancing measures.
The Queen Victoria Building in Sydney has been left empty after strict social distancing measures were introduced
People have been left with little to do during lockdown (Pictured: Social distancing in practice at the coffee shops in Cronulla Mall in Sydney)
Centrelink offices have since been flooded with desperate workers hoping to get the job seeker benefit.
Solomon Lew's Premier Investments, which owns General Pants, Smiggle, and Peter Alexander, shut all its Australian stores last week.
Around 9,000 of the company's staff around the world will be stood down without pay until at least April 22.
The company said it does not intend to pay rent on any of its stores. Around 70 per cent of its leases in Australia and New Zealand run out this year or are already expired.
The group's bosses will be working from home without pay.
RAG Group, which owns Tarocash, YD and Connor, also closed 500 stores and standing down 3,000 workers.
Meanwhile, Accent Group - which owns Athlete's Foot, Platypus and Hype - has announced it is closing 522 stores and standing down around 5,000 staff.
During the stand down period, employees will continue to accrue entitlements and may access their annual and long service leave entitlements.
ALH pub group has stood down 8,000 workers and jeweller Michael Hill has told 2,500 people they no longer have a job.
Hanes Brands, which owns Bonds, Bras N Things, Sheridan and Champion, announced the closure of its stores on Tuesday
About 3,000 employees have been stood down as a result of the closure
Flight Centre has announced 3,800 job losses in Australia - and 6,000 globally - after the Prime Minister banned overseas travel.
Pubs and gyms have been forced to close to prevent mass gatherings.
Cafes and restaurants are only allowed to offer a takeaway service.
The government has been working to soften the blow to the economy, pledging to support workers who lose their jobs.
Scott Morrison announced an extra $66billion worth of spending on Sunday, bringing the total survival package to $189billion - or 10 percent of Australia's GDP.
