In the wake of easing restrictions across Australia and a successful trial run, Michael Hill reopened some of its Australian stores over the weekend.
The business, which closed its 301 global stores in March, reopened the doors to 100 Australian and 25 New Zealand stores on May 16.
The stores reopened with new safety protocols in place including Perspex screens for transacting with customers, stickers on the floor to encourage social distancing and a heightened cleaning regime.
However, in a trading update, the business said that it will keep unprofitable stores closed - with five in Australia, three in NZ and one in Canada set to remain closed.
"We have been actively planning the reopening of our store network and great consideration has been placed on re-evaluating the store network, customer demographic, and store profitability.
"Accordingly, we have been negotiating with all our landlords to reach reasonable commercial arrangements that reflect the reality of the consumer marketplace and trading conditions.
"In addition, the Company has decided that it will not reopen some underperforming stores across all three segments.
"Further store closures are likely across all markets, based on store performance and the outcome of landlord negotiations," the business said.
But while COVID-19 took a toll on Michael Hill's physical presence, its digital presence boomed, with online sales above previous record Christmas 2019 levels for the past three weeks.
While the stores were closed, the business made the most of the opportunity and introduced new digital initiatives to enhance the customer experience.
New digital introductions included:
- The Australian launch of virtual appointments. Customers can book a video appointment with sales professionals and can tailor their virtual appointment and select engagement, gifting or styling sessions. This service will be tested and analysed in Australia for a month before being rolled out to other countries.
- Michael Hill Connected: an online video hub that provides customers with the latest information on new product
launches, expert advice, styling tips and gift guides. - A shoppable catalogue: the interactive catalogue links to products on the website for easy purchase.
- Proactive chat on 'my bag' page: chat conversion tracking that allows customer service team members to
respond to customer questions in the final stage of online purchases. - Shoppable Instagram feed: direct links from Instagram to the Michael Hill website for easy purchase.
- WeChat Mini Commerce Store – Michael Hill WeChat Mini store facilitates a connection with a new audience to access and purchase Michael Hill product.
Additionally, the business' loyalty program, Brilliance, has grown, with memberships increasing to over 100,000.
Michael Hill's loyalty revenue now represents 42% of total e-commerce revenue - its highest since launching Brilliance.
Further, Michael Hill's CEO Daniel Bracken has had his duties eased following surgery.
The Board has determined that given Bracken is able to continue to fulfill his duties during this short period of recovery, there is no need to appoint an acting CEO.
Commenting on the progress of the business through the COVID-19 period, Bracken said that Michael Hill has made the most of the challenging circumstances.
"The surge in our digital sales signals a notable shift in consumer behaviour in the jewellery category.
"We have been quick to respond and harness this opportunity, with the implementation of a number of digital initiatives to continue to attract new customers and maintain the momentum.
"I’m very proud of the agility of our team to roll out so many digital initiatives in such a short period of time.
"As we reopen stores, we are placing the utmost importance on the safety of our employees and customers.
"We look forward to enabling our customers to celebrate their love, style their wardrobe and find their memorable gift in a safe
store environment as we all navigate through these unprecedented times.
"I would like to thank our loyal employees and customers for continuing to support us.
"I’m witnessing a sense of resilience, determination and purpose from all parts of the business.
"The next six months and beyond will continue to be challenging, however, we are well-placed in each market to emerge as a strong and more relevant jewellery brand," he said.