Retail chains such as Smiggle, Just Jeans, Portmans and Jay Jays are posting rising sales following lockdowns

Billionaire retailer Solomon Lew says he is not overly concerned about the emergence of the Omicron variant ruining crucial Christmas sales for his fashion and apparel empire.

Premier Investments chairman Solomon Lew with CEO Richard Murray. Picture: Aaron Francis

Billionaire retailer Solomon Lew says he is not overly concerned about the emergence of the Omicron variant ruining crucial Christmas sales for his fashion and apparel empire, with shoppers cashed up and enjoying one of the strongest economies in the world.

The chairman of Premier Investments — which runs retail chains Smiggle, Peter Alexander, Portmans, Jay Jays and Just Jeans — said record vaccination rates, low unemployment and low interest rates had made Australia “the envy of the western world” and was helping to drive a positive momentum in the retail sector.

Recently appointed Premier chief executive Richard Murray backed up his chairman’s views, adding that Premier Retail had bought early in terms of its fashion and apparel supplies. As a result, it is well placed to sell into elevated demand into Christmas fuelled by the more than $200bn in built up cash reserves Australians were now sitting on.

After Premier’s annual general meeting on Thursday, where Mr Lew revealed the retailer’s sales growth had bounced back in November following the easing of lockdowns across Victoria and NSW, the businessman said latest sales data flowing from his stores did not point to any pullback in consumer spending in the wake of the new omicron strain.

“I think listening to the Prime Minister and what he is saying to our fellow Australians ‘is steady as she goes’ and there is no reason for concern at this point in time and we will just see what happens,” Mr Lew said.

“We don’t know enough about it (omicron). Our numbers are very positive and are really good and the way I see things is like this, no other government in the world has delivered on jobs, low interest rates, investment in infrastructure and most important of all the record vaccination rates. You would have to say we are the envy of the western world.

“The Morrison government has delivered in spades and I am feeling extremely positive the voters will realise how fortunate we are and will return the coalition government with a majority.”

Mr Lew has been a long and vocal supporter of the coalition and next week will host Treasurer Josh Frydenberg at an Australia Israel Chamber of Commerce lunch in Melbourne.

“And I think that is why there is such positive momentum at the marketplace at this point in time, and money is being spent.

“Australians are resilient and I’m sure they realise what this government has delivered against all odds.

“We are ready to celebrate a great family Christmas and a strong start to 2022, and personally I am looking forward to the return of international students, tourists and desperately needed international workers.”

Mr Murray was also upbeat about the outlook heading into Christmas.

“It is obviously a volatile period in the sense that while we are really confident, there is plenty of cash in the economy, it will be interesting to see how consumers buying patterns go over Christmas, but we have the stock, the stores are open, the teams are in place and we bought early so … we are really comfortable where we sit at the moment.”

Mr Lew revealed at the AGM a trading update to investors in the context of recent lockdowns in Victoria, ACT, NSW and New Zealand that had seen non-essential retail closed and thousands of trading days lost. And sales had bounced back.

“Over half of our retail stores have been forced into temporary government mandated closures for a significant period since the commencement of the 2022 financial year on 1 August 2021.

“Since that date, over 42,000 retail store trading days have been lost. At the time of Premier’s 2021 results release in late September 2021, it was noted that, as a result of the government mandated shutdowns, Premier Retail global sales were down 9.5 per cent for the first seven weeks of 2022.

“As stores have progressively reopened in New South Wales, ACT, Victoria and across New Zealand, we have been pleased with how our product has resonated with our customers.”

For the three weeks to November 27, Premier Retail, which houses Premier Investments’ fashion and apparel chains, had seen all of its retail stores open for the first time this financial year, with sales up 10 per cent from last year.

As a result, sales for the 17 weeks to November 27 are down 3.5 per cent on a comparable period, with like-for-like sales for the half to date up more than 12 per cent, Mr Lew said.

“Whilst we have some significant trading weeks still ahead, the customer reaction to our products provides us confidence for the remainder of the half.”

Mr Lew said Premier Retail remained stocked up to cater to consumer demand.

“We continue to invest in inventory, and we have the very much wanted inventory on hand. We own our own brands. We own our own critical infrastructure, like our distribution centre and our group headquarters. We have a proven first-class management team. We manage our other major costs, including our rent, for maximum flexibility in a changing market.”

Mr Lew said Mr Murray had “hit the ground running” since joining in September from JB Hi-Fi.

Mr Murray said Premier Retail hadn’t struggled to find store staff but had filled rosters “just in time” following the end of university exams.

Premier shares closed down 0.8 per cent on Thursday, at $29.98.