Retail veteran Solomon Lew has asked Prime Minister Scott Morrison to put "direct payments" into the pocket of Australians as the country's retail sector continues to reel from the unprecedented coronavirus crisis.
The seasoned retailer told The Age and The Sydney Morning Herald he had spoken to Mr Morrison and Treasurer Josh Frydenberg about stimulus options during the week and had pushed for a package for "the man on the street".
Solomon Lew and Mark McInnes are putting the hard word on landlords over the coronavirus crisis.Credit: Paul Jeffers
"There's going to have to be a huge stimulus package...and that's got to go directly to the people," Mr Lew said.
"I'm sure that when [the government] makes their announcements over the next period of time, we'll be seeing some very positive outcomes for the Australian public."
Mr Lew and chief executive Mark McInnes also warned of "significant hardship" across Premier's entire business at the company's half-year results on Friday, putting pressure on landlords to cooperate as retailers struggle through the pandemic.
The apparel and stationery retailer reported a "solid beat", according to Credit Suisse analysts, with its net profit for the six months ending January 25 rising 12.2 per cent to $99.6 million.
Revenue for the half was up 7.6 per cent to $732.1 million, slightly ahead of analysts' expectations. Comparable sales across its brands, which include Just Jeans, Smiggle, Peter Alexander, Dotti and Jay Jays, were up 4.3 per cent. All seven brands delivered positive comparable sales growth.
Investors reactedly positively to the news, sending Premier shares up 16 per cent to $12.04, a small reprieve after weeks of battering, which has seen shares decline over 50 per cent.
Despite the positive half, Premier is set to endure the same coronavirus troubles as the rest of the retail sector, with the company warning that trade in some of its markets had been "severely disrupted".
All brands operating in Australia and New Zealand had seen lower trade in tourist-skewed stores, and the retailer's UK and Ireland Smiggle stores have "deteriorated significantly" since the announcement of coronavirus as a global pandemic.
Mr McInnes said 70 per cent of the company's leases were either in holdover or were expiring this year, giving the company the luxury of being able to give 30 days notice if landlords don't play ball.
"We think the landlords should just accept that this is a global pandemic, and they've got a role to play in ensuring retailers survive it."
Premier has closed two stores since the outbreak of COVID-19 and would be prepared to close more, he added.
Premier's inventory sits 19 per cent higher than it did at this time last year, but the business warned much of its stock would be discounted to lure shoppers into stores, which would hurt its gross margins for the half. However, Mr McInnes said the company's strong balance sheet and experienced management team gave it some protection against the current headwinds.
"We've had a good half and we're in an incredible position. A global pandemic is upon us, but when it's gone, we'll be in the best possible shape," he said.
Premier declared a dividend of 34 cents per share, fully franked, but has delayed its payment until September 30 in order to preserve cashflow.