ASX-listed retail group Mosaic Brands has informed shareholders of plans to shut about a fifth of its stores, citing decreasing income from brick-and-mortar stores.
That comes after the retail group, which manages brands such as Noni B, Rivers and Millers, reported a $90 million drop in earnings as well as a $225 million drop in revenue.
Mosaic chair Richard Facioni informed shareholders this afternoon the company was under no illusion that customers shifting to online instead of in-store shopping was permanent.
“This has implications for our physical retail footprint, and we’ve taken well publicised steps to remodel our store portfolio,” he said.
“Stores are and will always remain a central part of Mosaic Brands and serving our customers.
“But not at the cost of unrealistic rents, nor landlord expectations that pre-date the internet.”
Managing director Scott Evans confirmed the group would close up to 250 stores nationally before the end of June, saying the group would move aggressively to close stores where the landlord has what he described as pre-COVID-19 rental expectations.
That comes after the group had threatened to shut 500 of its 1,300 stores earlier this year due to ongoing financial difficulties and disputes with landlords.
Mosaic had already shut 73 of its physical stores this year in response to economic pressure caused by the pandemic.
The group closed trading today at $0.63 per share, down just $0.01 on opening.
