Jewellery chain Michael Hill has closed all stores worldwide in response to the unprecedented shift in consumer behaviour and rapidly changing government regulations due to the coronavirus pandemic.
The retailer has more than 300 stores across Australia, New Zealand and Canada, but is now selling online only in a bid to reduce costs and comply with new public health measures.
While it is not legally required to close stores in Australia, the retailer on Tuesday suspended operations of its national store network for an indefinite period of time with immediate effect.
Michael Hill said that the current guidelines on social distancing in Australia are not consistent with the day-to-day conduct of its business and that it has experienced a drop-off in trade.
The retailer has also suspended store operations indefinitely in New Zealand, where a near total shutdown is set to take effect at 11:59pm on Wednesday.
All non-essential businesses in New Zealand will be forced to close for four weeks. Currently, only supermarkets, pharmacies, service stations and health services are exempt from the lockdown.
The retailer has also extended the two-week shutdown of all stores in Canada, which it announced on March 20 in compliance with public health guidance, for an indefinite period.
Michael Hill has stood down team members in all three markets and deferred payment of its interim dividend of 1.5 cents per share for a period of six months. It is also undertaking a strategic review of its corporate support centre with a view to reducing costs.
“The Board and management team have acted swiftly today following the extraordinary circumstances that are impacting the Australian and New Zealand retail markets,” Emma Hill, chair of Michael Hill, said in a statement to the ASX on Tuesday.
“Whilst it is clear that the suspension of our store networks is necessary for the safety and wellbeing of our people and our customers – we also know that this will be a time of great uncertainty for them too, and we are doing our best to provide them with the support that they need through this difficult time.”