David Jones has seen a 108% uptick in online sales in March, as foot traffic dwindles due to the COVID-19 pandemic.
In a trading update, DJs parent company Woolworths Holdings stated that while the online sales were strong and made up 20.3% of sales in March, overall, the department store's sales were down 19% compared to the same period in 2019.
Despite these results, DJs continues to remain open and has only closed its smaller format stores in Barangaroo in Sydney and James Street in Brisbane.
"David Jones has, for now, taken the decision to continue to trade in its large format stores which are cashless and able to accommodate social distancing protocols," Woolworths Holdings said in a statement.
"The impact of the slowdown due to COVID-19 was seen earlier in stores that have a higher proportion of tourist trade and Asian demographic customers.
"The impact has subsequently become more widespread across all stores and customer segments with a significant reduction foot traffic in March.
"The DJ online channel which continues to operate as normal and has proven to be robust, has seen a significant surge in transactions and revenues.
"We continue to see a drop in footfall across the store portfolio and are focused on stimulating trade, reducing inventory and generating cash," Woolworths said.
For the first nine weeks of the second half of the financial year, sales were up 0.5% compared to the year prior.
Country Road Group however, hasn't been so fortunate.
In the first two weeks of March store traffic decreased by 36% and by over 60% in the subsequent two weeks.
This resulted in an overall decrease in sales of 32.3% in March versus the prior comparable period, compared to an increase of 1.7% in the preceding nine weeks to the end of February.
In light of these declines and to comply with the government's social distancing measures, the Group decided to close its stores on March 28.
Assessing the current trading conditions, Woolworths Holdings has advised shareholders that headline earnings per share (HEPS) for the 52-week period ending 28 June 2020 is expected to be more than 20% (more than 66.1 cents) lower than the reported HEPS for the comparable period in the prior year (2019 HEPS: 330.4 cents).
To help to mitigate further impacts, Woolworths Holdings is taking decisive actions, it said in a statement.
"The impact of the COVID-19 virus is being felt across all markets in which the Group operates.
"The Group is actively pursuing operational steps and considering strategic options to best mitigate the impacts of the crisis and to ensure the appropriate robust response in this developing situation.
"Our first priority is the health and safety of our people, our customers and all our stakeholders, including our extended value chain," it said.
The WHL Board, Group CEO and senior Executive team members have decided to forego up to 30% of their fees and salaries over the next three months.
The savings arising from this will be used to provide additional financial support to staff who find themselves in extreme hardship as a result of the current crisis.
Woolworths Holdings is also placing significant focus on facilitating trade and driving revenue including through online channels.
The business is also aggressively reducing costs and managing inventory and working capital. Capital expenditure has been cut, with only critical projects set to go ahead at this time.
The Group has engaged with its suppliers to reduce apparel product intake and to extend payment terms.
It is also meeting with landlords to explore alternative arrangements to current lease commitments, through the relevant period.