Jeweller - April 2020

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STRATEGY FEATURE Surviving Coronavirus COPING with CORONAVIRUS: BUSINESS SURVIVAL GUIDE As COVID-19 continues to spread across Australia, it is imperative for business owners to prepare for the months ahead. ARABELLA RODEN looks to retail experts around the world for strategies on trading in these unexpected In less than two months, the coronavirus pandemic has caused widespread upheaval across every sector of the Australian economy. At the time of publication, the number of cases stood at more than 4,700, with 20 deaths. According to modelling by PricewaterhouseCoopers (PWC), the virus could reduce Australia’s Gross Domestic Product (GDP) by $34.2 billion over the next 12 months. The disruption to the retail sector, in particular, cannot be overstated, with PWC estimating household consumption could fall by $37.9 billion. Indeed, the Australian Retailers Association (ARA) noted that footfall had begun to decrease in February. By mid-March, major shopping precincts including Brisbane’s Queen Street Mall and Bourke Street Mall in Melbourne were all but empty. According to ShopperTrak, foot traffic in shopping centres fell 46 per cent in the third week of March when compared with the same period in 2019. Consumers appeared to have heeded the advice of state and federal governments to stay home unless shopping for necessities, such as groceries and medicine. Meanwhile, store owners struggled with new regulations on social distancing within their premises. The changes lead a number of major retailers to pre-emptively close their store networks indefinitely. Among them were department store Myer, fashion retailers Country Road and Cotton On, and jewellery retailers Michael Hill Australia and Lovisa. Notably, Solomon Lew’s Premier Investments – which owns brands Smiggle, Dotti, Just Jeans, and Peter QUICK NUMBERS 6 Months predicted of business hibernation $319b Government and Reserve Bank stimulus spending 11-18 Months predicted until the start of economic recovery Alexander, among others – closed more than 900 stores for four weeks, refusing to pay rent for the duration of the shutdown. Lew has also closed his family-owned retail chains NineWest, French Connection, and Seed. Indeed, rising occupancy costs have been a significant challenge for retailers, particularly following the sluggish trading figures of 2019. In order to support retailers, the National Cabinet has declared a six-month moritorium on rental evictions. The Prime Minister has also advised businesses, lenders and landlords to negotiate in order to reduce mortgage and lease payments until conditions return to normal. “We’re asking businesses to adapt to what is not a usual set of circumstances,” he said. “They must be sustainable because they will run for, we believe, at 18 | April 2020
GET PRODUCTIVE Retail Action List least six months and we want to be able to get everybody through.” Banks are expected to defer mortgage repayments for home-owners, investment property landlords, and businesses, for six months. In addition, Parliament has passed a raft of measures to assist businesses and individuals who have been impacted by the crisis. At the time of publication, the total spending, combined with Reserve Bank measures, stood at $319 billion. Crucially, the Morrison Government included increases to Centrelink-based income support payments, as well as a $1,500 fortnightly payment, known as JobKeeper, for employers who retain workers throughout the sixmonth ‘hibernation’ period. The measures are particularly pertinent to the retail industry, in which thousands of sales and support staff have been ‘stood down’ without pay or made redundant. In addition, other sectors such as travel have been forced to suspend services due to restrictions and safety concerns. As a result, once-secure companies such as Qantas have put in place large-scale redundancies, leaving thousands of full-time workers suddenly jobless. Westpac chief economist Bill Evans estimates the number of unemployed people in Australia will rise by 814,000 within months, leading the unemployment rate to more than double, from 5.1 per cent to 11.1 per cent. Where do we go from here? According to experts, patience is the most critical factor in developing a survival strategy for the pandemic. “For all the drama of collapsing output, demand, and jobs in Australia and many economies around the globe, we should expect that output in most countries will begin to recover once new coronavirus infections peak and head down,” writes John Edwards, adjunct professor at the John Curtin Institue of Public Policy, Curtin University in a recent article published by the Lowy Institute. “It will not be soon, but it will happen,” he adds. For retail business owners, the priorities are health and safety, cashflow, financing and debt management, and communication. There are three key steps business owners should take: 1. Remain up to date with the latest information and health advice from the Australian Government Department of Health, as well as state and territory authorities. 2. Mitigate transmission of the virus by altering everyday business processes, following stringent hygiene practices, and limiting non-essential contact. 3. Keep employees informed of changes to processes within the business and link them to relevant information, such as official health and safety advice, workplace entitlements, and travel restrictions. Take time to gather your thoughts. Turn panic into productivity Schedule your tasklist, negotiate leases, focus on minimising costs and update your web presence It’s time for that big store clean! Get your gloves on and get disinfecting Implement strict new hygiene policies for staff and customers Keep countertops, benches, mirrors, registers and all surfaces sterilised Disinfect floor stock and clean jewellery while completing a full stocktake CREATING A VIRUS-FREE ENVIRONMENT HYGIENE & STORE MAINTENANCE How is coronavirus spread? • Surfaces – the most frequent means of transmission: The virus is known to primarily spread via droplets from an infected person landing on surrounding surfaces. Other people catch COVID-19 by touching contaminated surfaces, then touching their eyes, nose or mouth, allowing the virus to enter their respiratory system. • Airborne – can be minimised with social distancing: When you sneeze or cough, you generate more droplets. Standing too close to a sneezing infected person means you could then directly breathe in the droplets they have coughed or sneezed into the air. • Virus lifespan: Recent published research found that the virus can survive for hours – and in some cases days – outside a host, depending on the type of surface it has landed on. Viable virus particles – those which are still able to cause disease – were detected for up to 72 hours on stainless steel and plastic surfaces, but no longer than 24 hours on cardboard, and four hours on copper. How do I stop my store from contamination? The virus is commonly transferred by hand-to-face touching, after contact with contaminated surfaces. Therefore, one of the most effective ways to minimise the spread is to prevent surface contamination. The rule is, ‘First clean, then disinfect.’ STEP 1: Cleaning refers to the removal of germs, dirt, and impurities from surfaces. It doesn’t kill germs but can reduce their numbers and prepare surface for disinfection. STEP 2: Disinfecting refers to using chemicals to kill germs on surfaces. This process does not necessarily clean dirty surfaces or remove the dead germs. Essential processes: Wipe down items delivered or brought into the store Clean all jewellery that has been shown to a customer Regularly wash your hands thoroughly with soap for 20 seconds Frequently clean and disinfect high-touch surfaces such as doorknobs, light switches, handles and benches, counters, windows, transaction equipment, and phones Which cleaning products work best? Detergents first break down the layers of dirt and dust to allow disinfectants to work. Experts advise that both a detergent, such as soap, and disinfectant, such as bleach, are required. Ensure disinfection products are left on long enough to work. For simple cleaning, hot, soapy water is ideal. Always wear gloves throughout cleaning process Effective disinfectants include diluted bleach, those with an alcohol content above 71 per cent, and hydrogen peroxide Delicate surfaces, such as soft furnishings, should be wiped down with soapy water and then steam-cleaned If you have windows, try to flush clean air through your workspace April 2020 | | 19
Page 1 and 2: VOICE OF THE AUSTRALIAN JEWELLERY I
Page 4 and 5: Manage every interaction with your
Page 6 and 7: In house self-winding movement, 40m
Page 8: Upfront #Instagram hashtags to foll
Page 11 and 12: Coronavirus forces drastic measures
Page 13 and 14: Furore as diamond prices fall; Rapa
Page 15 and 16: INSIDE My Store The Diamond Shop AU
Page 17: LEARN ABOUT Gems Synthetic Moissani
Page 21 and 22: FREE SUPPORT SERVICES FOR INDEPENDE
Page 24 and 25: STRATEGY FEATURE | Coronavirus Surv
Page 26 and 27: STRATEGY FEATURE | Coronavirus Surv
Page 28 and 29: INTERNATIONAL Trade Show Report WRI
Page 30 and 31: FEATURE Watch Industry Report WATCH
Page 32 and 33: TRENDS IN TIME | Watch Industry Rep
Page 34 and 35: Colour Diamonds Feature | FLIGHT OF
Page 36 and 37: Product Showcase NEW RELEASE Adina
Page 38 and 39: Watch Showcase E BESTSELLER EPOS Sw
Page 40 and 41: Watch Showcase NEW RELEASE Luminox
Page 42 and 43: BUSINESS Retail Strategy REAL REASO
Page 44 and 45: BUSINESS Selling Why repeat sales a
Page 46 and 47: BUSINESS Marketing & PR Simple and
Page 48: My Bench Steve Pallas Steve Pallas
Page 51 and 52: When 2 shows are better than 1 INTE

Jeweller - April 2020

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