Premier Retail has demonstrated its commitment to the new way of retailing, with the closure of 51 stores in the past 12 months.
According to Premier's first half results, "the accelerated swing in customer preference to shopping online has further increased Premier Retail’s focus on each store’s profitability," meaning that it will walk away from underperforming stores that have unrealistic rents.
The move follows similar actions from fellow major retailers including Mosaic Brands and Accent Group, who have also cited the shift to digital as a key reason for re-evaluating and closing stores.
Despite the number of store closures conducted over the past year, Premier was able to reach a mutual agreement with key landlords during the half.
The agreement sees the Group’s first half normalised rent rebased to 12.7% of sales (on a 26 week basis), a reduction of 318 bps on 1H20.
"While it is not Premier Retail’s objective to close any stores, should landlords not accept the major shift in consumer shopping behaviour and adjust their rents according to customer shopping preferences, store closures will be inevitable," Premier said in a statement.
"Pleasingly many landlords recognise the long term financial strength of Premier and its seven iconic brands," the business said.
The news comes as the business reports record digital sales and further investment in eCommerce.
During the half, Premier Retail generated online sales of $156.7 million, up $59.5 million or 61.3% on a previous record in 1H20 and contributed 20.0% of total 1H21 sales (1H20: 13.3%).
The business is also investing further into its digital capabilities including expanding its digital team, its information technology, digital marketing capability and distribution centres.