The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Thursday despite being the latest company to announce store closures in response to the COVID-19 outbreak.
At the time of writing the retail giant's shares are up 3.5% to $24.32.
What did JB Hi-Fi announce?
This morning the retailer advised that its New Zealand stores have been impacted by the New Zealand government's introduction of alert level 4 restrictions that limit all nonessential businesses.
These restrictions have been put in place to limit the spread of COVID-19 and are expected to remain in place for a minimum of four weeks.
According to the release, JB HI-FI New Zealand's 14 stores, online and commercial operations are closed from today.
Whilst this is disappointing for the company, given the circumstances it is of course necessary. Pleasingly, management notes that the New Zealand business does not make a material financial contribution to its overall results.
For example, FY 2019 sales of NZ$236 million represent approximately 3% of its total total annual sales. The business, which has been struggling, recorded an EBIT loss of NZ$1.9 million in FY 2019.
Management advised that it is working to support its New Zealand team members and customers through this difficult time. Adding that "the health and wellbeing of our team members, customers, business partners and the wider community remains the Group's highest priority."
What else has closed in New Zealand?
JB Hi-Fi isn't the only company that has been impacted by store closures in New Zealand.
On Wednesday Wesfarmers Ltd (ASX: WES) advised that 25 Kmart New Zealand stores will be closed from today. And while 53 Bunnings stores will remain open in the country, they will remain open to trade customers only. The general public will not be able to enter these stores.
In addition to this, Premier Investments Limited (ASX: PMV) had been forced to close its stores in the country. It has since decided to close its global network of stores. This includes popular brands such as Smiggle, Peter Alexander, and Just Jeans.
