While fashion group Mosaic Brands saw a loss of A$212 million during FY20, its online sales saw a significant bump during the same period its stores were shuttered.
And chief executive Scott Evans told investors the business expects online sales to continue to be strong for the foreseeable future.
“We believe that what Covid’s done is take the next three to five years [of online growth] and make it happen in three to six months,” Evans said.
Online sales across the group’s brands, which includes New Zealand-founded EziBuy, grew 14.7 per cent year-on-year to A$93.7 million.
According to Mosaic, EziBuy’s turnaround plan is making “solid progress”, and has already reduced its cost of doing business and improved its inventory holdings.
“Mosaic will continue to review its option over the remaining 49.9 per cent over the coming months in light of EziBuy’s strategic benefits,” Mosaic said.
The picture is not as rosy in Australia, however, which has seen a number of Mosaic’s stores closed by Westfield and which could see a further 300 to 500 stores shuttered by FY22.
“Shuttered stores work for no one so we aim to minimise closures, but not on uncommercial terms,” Evans said.
““There is no roadmap to navigate these circumstances, but our operational priorities have been ensuring team and customer safety, reducing inventory and maintaining a strong cash position.”