Good post. The retail landscape is about to be upended once again this time by the Delta variant. Differences between the initial wave of Covid-19 and this new serious lockdown will certainly define the SP over the coming few months.
~ No job keeper but a more targeted financial payment system which raises the question how much fire power will/do consumers have? My view is that most of the spending that was brought forward as a covid response applies to retailers in the home office/ home furnishings area and so as a footwear retailer I'm anticipating continued levels of discretionary spending.
~ AX1 has a proven omni channel approach to retailing. If anything store closures shouldn't be anywhere near the issue they were a year ago because buying online and click and collect are now established retail behaviours. The store network also serves as a distribution warehouse as such. The entire nation's spending habits have changed and aint going back any time soon. The successful retailers (look at JBHIFI's results today) proving that the biggest and best will only get bigger and better in a Covid world.
Other possible issues will be the continued pressures on the supply side. I'm thinking that management have been " able to see around corners" and as part of a sold risk management strategy have anticipated supply side shocks associated with Delta and have already acted to mitigate this.
AX1 Price at posting:
$2.39 Sentiment: Buy Disclosure: Held
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