It has been another very tough day for ASX investors, with the S&P/ASX 200 Index (ASX: XJO) down by 6.4% after a rollercoaster ride on the market over the past week.
One of the sectors that has been hit particularly hard today is the Australian retail sector for consumer discretionary items such as clothing and jewellery.
While supermarkets such as Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have seen a surge in demand for food and other essential items, customers are now starting to stay away from shopping centres as the government ramps up its message about social distancing and the seriousness of the crisis we are now facing.
In light of the current environment, here are three ASX retail shares that were hit particularly hard today.
Lovisa Holdings Ltd (ASX: LOV)
Lovisa is a jewellery and accessories company with over 150 stores in Australia and nearly 300 additional stores located globally in countries such as New Zealand, Singapore, South Africa, the UK, USA and France.
The jewellery retailer suffered a massive 25.21% hit to its share price today, closing at $4.36. Back on February 20, the Lovisa share price was trading at $11.75, so it has lost a massive 63% in value during this period, particularly over the last week.
On February 19, Lovisa reported its half-year results revealing a 22.2% increase in revenue to $162.8 million. Although investors reacted positively at the time, this result has not been enough to stop a downhill run in the Lovisa share price.
City Chic Collective Ltd (ASX: CCX)
Another ASX fashion retailer in City Chic suffered a heavy fall today, with its shares closing 15.79% lower. This comes on the back of heavy falls over the past few weeks and another big share price drop of 12% on Monday.
City Chic offers women a range of clothing, accessory and footwear options. No doubt investors are growing increasingly concerned about the lack of foot traffic that the retailer is likely to see in its stores over the coming weeks and possibly months as the coronavirus crisis in Australia continues.
The company has a strong multi-channel strategy, so it will be looking to capitalise on its online channel in the months to come.
Premier Investments Limited (ASX: PMV)
Premier Investments is another ASX retail chain operator that has taken a bit hit to its share price today, down by 12%. The company operates a number of specialty retail brands such as Smiggle and Peter Alexander across Australia, New Zealand, Asia and Europe.
Premier Investments is suffering the same issue as other discretionary retailers at the moment, with the market trying to factor in the impact of a reduction in foot traffic over the coming weeks and months.
However, I think Premier Investments' market capitalisation and diversification is why its share price has been impacted less than both Lovisa and City Chic which are smaller, specialty chains and therefore under much higher pressure of seeing store closures in the months ahead.
