Cue Clothing Co. executive director Justin Levis has outlined the challenges his business is facing during Sydney's extended lockdown.
The retailer, which is the largest manufacturer of clothing in Australia, is facing the reality of a disrupted and potentially long-term locked-down production workforce, Levis told Ragtrader.
"Our manufacturing base is in these [Sydney] hotspots," he said.
"They are actually closed right now.
"We're now looking at this situation and if people aren't allowed to work for more than two weeks or longer, it's really business critical for us," Levis said.
While approximately 50 of the group's store locations - across Cue, Dion Lee and Veronika Maine - are closed in NSW and 31 are closed in Victoria, the remainder of the business is open, requiring stock.
To bring some of its manufacturing base back online, Levis said the business is working with its suppliers to suggest how they can operate in a COVID-safe manner.
Such solutions include shift work and ramping up testing.
"We are now looking at getting everybody tested and making sure that they just travel from home to the factories.
"We've got machinery here to be able to start some production and do it in shift work.
"But production will be severely hampered and down.
"But we're looking at getting back up and running and getting everybody tested every three days," he said.
Meanwhile, the business is also grappling with the reality of not being able to access government support.
"I find it really frustrating that government looks at companies that are just under $50 million turnover to get relief.
"I think there needs to be relief shared equitably, between the retailer, the landlord, the bank, and the government.
"NSW is usually 30% of my business both online and in-store, and that retail business is pretty much gone, it's pretty much zero.
"So what's happened is NSW is now tracking at 40% of online sales, but that by no means can cover what I've lost at the stores.
"But of course, that harsh reality is that if people are locked down, they don't really need to be buying my product," he said.
And while the challenges of the lockdown are certainly adding up, Levis adds that positive things have come from it too.
Digital innovations such as virtual styling sessions have proved to be an effective solution to keeping customers engaged while at home.
"One benefit of this virus is that it has sped up fast technological innovation, which has been a huge boom," Levis said.
"We very quickly introduced a platform called Book a Stylist.
"It's a platform that allows customers to make a booking through our website for a virtual styling session with one of our stylists, who are actually in a dark store.
"Through the virtual sessions we have noticed a five-fold increase in average order size," he said.
Additionally, while not working at dark stores, the business' team can further their skills through online training programs, while in lockdown.
"Now that our staff are off the floor, we're ensuring we're doing as much training as possible," Levis explains.
"But it's difficult given that we did so much training during the previous lockdown," he said.
Overall, Levis contends that what's good for stamping out the virus is good for business.
"In this situation, I feel, whatever it takes to eradicate the virus is good for saving human life and keeping people happy, well that's actually commensurate with my business thriving as well.
"What's good at eradicating the virus is good for the economy.
"I do feel if [lockdown] was done, swiftly, quickly and earlier it would've been short term pain for the long-term gain.
"Prolonging this lockdown is just costing me a fortune," he said.