Mosaic eyes 250 store closures as landlords refuse to cut rents
Mosaic Brands has warned that it could close another 250 stores this financial year.
The retailer of brands such as Noni B, Millers, Crossroads, Katies and Rivers, said it had already shut 73 during the first quarter “on response to unrealistic rental requests and a permanent shift towards online purchases”.
Chief executive Scott Evans told shareholders at the company’s annual general meeting, that online sales for the first quarter had increased 31 per cent. This had contributed to margin growth and a 50 per cent drop in inventory holdings.
“We are encouraged that a number of landlords have, in recent weeks, come to the table on rental reductions, but not all have and we expect up to a further 250 store closures by June 2021,” Evans said.
Chairman Richard Falconi said customers had wanted to visit the stores but couldn’t. He said that was for the best.
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“With most lockdowns now lifted, we are confident those customers will stir from their hibernation and resume visiting our loyalty brands. Exactly when they will have the confidence to return in-store is still unknown,” he said.
Mosaic expects to return to profit in 2021.
