"If a retailer is down 30 per cent or down 50 per cent[in sales],JobKeeper is not going to be enough to save that retailer,"she toldThe Age andThe Sydney Morning Herald.
"For sales to be down that much,there is a huge amount of inventory you're not clearing,so then all of your future profits are going to be spent trying to clear that inventory."
"And while you're sitting on that inventory,you're not able to order new stock from suppliers. There's this domino effect,one thing is just leading to another."
Australia's retail sector has been battered through the coronavirus pandemic,with sales dropping 17.9 per cent throughout April. However,online trade has soared 16.2 per cent across the same period,according to business bank NAB.
It's just so disappointing there's not more they could do. Keeping people employed is one thing,but it's about keeping that whole ecosystem alive.
The Iconic CEO Erica Berchtold
The Iconic,a purely online fashion retailer,has been able to trade largely unhindered through the COVID-19 pandemic. The business is publicly listed on the Frankfurt stock exchange through its parent company Global Fashion Group,and in the 2019 calendar year reported $422 million in sales.
But despite doing a roaring trade in loungewear such as tracksuit pants and hoodies over the lockdown period,Ms Berchtold said The Iconic's sales haven't boomed as customer stopped spending in categories such as work and formal wear.