The Myer Holdings Ltd (ASX: MYR) share price was one of the standout performers on the ASX today, closing 7.41% higher after being up by as much as 15.56% in early afternoon trade.
The department store operator released a COVID-19 trading update at midday today, flagging the reopening of all stores by the end of next week.
What did Myer announce?
Taking into account government measures across the different states and territories of Australia, Myer has reopened 24 stores over recent weeks on a staged and trial basis.
Given the easing of restrictions across the nation, Myer now has its sights set on a full-scale reopening. It will reopen all of its remaining stores from next Wednesday 27 May, aside from Karrinyup in Western Australia, which is expected to reopen on 30 May after the completion of refurbishment works. Additionally, click-and-collect services will be available at all stores.
Stores will operate with enhanced safety and cleaning measures, including increased frequency of cleaning, hand sanitiser stations, social distancing, and contactless payments.
The department store operator closed all stores nationwide in late March, temporarily standing down around 10,000 staff in the process. On 24 April, Myer revealed that its online business had “performed strongly” since the closure of brick-and-mortar stores. The company echoed a similar sentiment today, noting the online platform has “continued to perform strongly” over recent weeks.
Again borrowing from its April announcement, Myer assured investors it is “continuing to take all necessary measures to minimise costs, including engaging in ongoing discussions with suppliers and landlords.”
While the reopening of stores is certainly welcome news for shareholders, an announcement from Wesfarmers Ltd (ASX: WES) might have acted as a further driver in today’s share price rise.
This morning, the ASX conglomerate shared details of a major shakeup in its discretionary retail division. Addressing the unsustainable financial performance of Target, Wesfarmers flagged its intention to close up to 75 Target and Target Country stores.
Given Target stores rival Myer in many locations, this news could have also been lifting the Myer share price higher today.
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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.