AuMake temporarily shutters stores amid tourist travel bans
AuMake has reduced trading hours and rostering across its store network, and has temporarily closed certain stores in an effort to curb the declining store visitation and spending.
While its physical business struggles, however, AuMake’s online business is performing at record pace.
After delivering record online sales in December of $1.7 million, February was able to match this result primarily due to the restricted physical movement of its China-based customers.
“We are very confident that demand from Chinese consumers for Australian products remains strong and we will significantly accelerate once bans are lifted and physical channels to the Chinese market open again,” AuMake executive chairman Keong Chan said.
“From the latest information received from our network in China, an increasing number of people are returning to work and business are starting to resume trading, which bodes well for increased product demand and consumption.”
Despite the effect of the virus on consumer confidence, AuMake’s physical presence broke-even for February, and while its Broadway stores are temporarily closed until the China imposed tour group travel ban is lifted it will continue to pay its rental commitments.
However, AuMake said these were not onerous to the business.
“We are completely focused on managing through the impact of COVID-19 with the utmost diligence, while at the same time continuing to innovate and assess opportunities for growth,” Chan said.
This story first appeared on sister site, Inside Retail New Zealand.