Peter Alexander, Smiggle boss says ‘long way to go’ for CBD bounce back

Premier Retail’s chief executive says there is a long way to go before Sydney and Melbourne’s CBD shopping areas return to normal after the Smiggle and Peter Alexander owner claimed thousands of days in lost trading due to COVID.

Profits at the $4.6 billion retailer dropped by 13 per cent to $163 million for the six months to December, but Premier’s board increased its payout to shareholders after the business posted growth in its key brands despite having storefronts shut due to COVID lockdowns. The interim dividend of 46¢, up from 34¢ a year ago, is payable on July 27.

Speaking to The Sydney Morning Herald and The Age, chief executive Richard Murray said the company had seen some positive results from CBD locations over the past six months, but acknowledged city shopping had not fully recovered.

“There is still a long, long way to go… The reality is that there are still a lot of offices where a material number of workers are not back,” he said.

While shoppers have been willing to return to shopping centres after lockdowns, they have changed the way they purchase in-store, he said. “Customers seem to be very mission-based in their shopping. I think there is still some of the older generations [that] are a little bit more conservative [going shopping].”

Mr Murray said supply chain costs pressures were being felt across the company but that Premier’s team was working hard to manage these. While he would not be drawn on whether customers might see price increases on specific products, he acknowledged the cost may have to eventually be passed on if conditions do not improve.

“There is no doubt some prices will have to move,” he said.

Online sales were up 27 per cent across the group, hitting a record $194.5 million for the six months to December.

Despite closures of many of its bricks and mortar Peter Alexander stores, the sleepwear brand sales grew 11.4 per cent to a record $227.4 million. Peter Alexander has grown sales by 57 per cent since the start of the pandemic, and by 400 per cent over the past decade.