NATIONAL: Australian fashion retailers have revealed the commercial toll of Queensland’s devastating floods, with vast store closures, staffing challenges and property damage.
The Just Group confirmed 70 of its 180 Queensland stores were closed for a day during the flood’s peak. Chief executive officer Jason Murray said this hovered at around 20 stores on other flood days, with only skeleton staff levels due to the dangerous conditions.
“As the floods moved around the state we closed appropriately,” he said. “All rostered shifts were paid, irrespective of whether stores were open or closed or if people couldn’t get in. We have also given them extra leave if they need it. Everyone is entitled to a day of volunteer leave if they are helping and a little bit of financial assistance if they had damage to their homes.”
The group – which operates stores for Dotti, Peter Alexander, JayJays, Just Jeans, Portmans and Jacqui E – has 20 per cent of its overall business in Queensland. Murray said two stores located in Emerald experienced water damage, but all 180 stores are now operational. He said short-term disruption to stock delivery was experienced.
Murray declined to estimate the impact the floods will have on the group’s financial year 2011 figures.
“Our focus has been on our staff and the communities that our stores operate in,” he said. “I think we have covered a lot of bases there. The overall impact – it wouldn’t be appropriate to dwell on that as we are part of a public company.”
He said it was difficult to predict when the state’s retail sector would recover.
“People will need to rebuild things and buy things, and they are very practical day to day items and activities that are at the coal face of economic activity, so people are going to be busy for some time doing things that are quite economically active.”
Womenswear retailer Specialty Fashion Group also experienced closures across the state for its brands, which include Millers, Katies and Crossroads. Four of its stores suffered water damage, while at one stage 41 of its locations were closed in the Gympie, Toowoomba and Brisbane areas.
At the time of press, chief financial officer Alison Henriksen said 25 stores remained shut, however daily re-openings were under way as conditions improved.
The managing director of another listed retail group, who declined to be named, was less certain about the recovery process for retail.
“We will get through now, but it is the aftermath of the devastation that will be challenging,” he said.
Cotton On was also among the other large names forced to close, with 12 of its Queensland stores shut during the flood. It reported that 122 employees were affected.
Melinda Oliver