A number of CEOs have called on governments to clarify restrictions as some retailers flag plans to reopen stores amidst the ongoing coronavirus pandemic.
But Dominique Lamb, CEO of the National Retail Association (NRA), doesn’t think further clarification is required: only a small number of retail categories have actually been told to close, such as restaurants and cafes, nail bars, waxing salons and other types of beauty businesses.
Most retailers, including discretionary categories such as fashion, gifts and homewares, are still allowed to trade, and those that have closed stores are free to reopen them whenever they choose to do so, as long as they comply with the new capacity limit of 4sqm per person.
“Discretionary retailers have chosen to close due to foot traffic, or because of global decisions, or for safety reasons, because they don’t want to expose their staff,” Lamb told Inside Retail. “But they’re still able to trade if they can do so safely.”
She blamed continued confusion around what’s allowed on the different approaches being taken in each state and territory and the recent media coverage of police fining people for supposedly violating shutdown orders.
“Clarity [is needed] on a national cabinet level,” she said. “It comes down to the state governments communicating clearly with retailers around what is required of them.”
Lamb said most state and territory governments have advised residents to work from home unless they are unable to do so.
“If you can’t, which you can’t in retail, then you’re able to attend [work],” she said.
“Police are rightly looking to ensure [people] are observing social distancing. But if you’re well informed, and you’re within those guidelines, there should be no issues. Decisions by the police have been reversed.”
Safety first
Recent weeks have seen major retailers, such as Myer, Country Road, Accent Group’s Platypus and Hype DC chains, Premier’s Smiggle and Peter Alexander chains, Michael Hill and Lovisa, close thousands of stores and stand down tens of thousands of staff.
But as the daily number of new coronavirus cases in Australia continues to fall, and the economic cost of staying closed adds up, some businesses are beginning to make noise about reopening.
Lamb echoed the SDA’s safety advice to install perspex screens at cash registers, display social distancing signage, provide hand sanitiser, masks and gloves to staff and increase sanitisation of stores, but said it was up to each individual business to determine whether it makes sense to reopen.
“It’s not the right option for all businesses – they’re not all going to receive the foot traffic,” she said.
The latest ShopperTrak data shows foot traffic is down nearly 90 per cent compared to this time last year, which raises the question, even if retailers decide to reopen their stores, will they have any customers?
But Lamb warned businesses not to bank on the current restrictions being eased anytime soon.
“I think the PM has been very clear – whatever measures have been put in place will stay in place for six months’ time,” she said.
On Thursday, Prime Minister Scott Morrison said social distancing measures would likely remain in place until a vaccine is available.
