Hudson said it is in the early stages of recovery as passenger volume gradually increases and is continuing to work with landlords for additional rent relief.
The retailer has reopened 100 stores as of 15 June
Announcing its financial results for the first quarter of 2020, the travel retailer said turnover decreased by 23.3% to $341.5m year-on-year, due to the impact of the Covid-19 pandemic, with like-for-like sales down by 22.5%. Profit also fell by 24.8% year-on-year, but lease expenses decreased by 51.3% as a result of rent waivers and a lower variable rent based on sales decline.
The company said it has so far re-opened 100 stores from a total of 700 that it had to close in April reflecting the sharp decrease in passenger travel volume in April. It now has plans for additional reopenings in each subsequent week at an “accelerated” pace.
Hudson CEO Roger Fordyce said: “Today, thanks to the hard work and unwavering commitment of our team, and through partnership with our landlords, we have slowly begun the rebuilding process of reopening stores as passenger volume increases.
“ In doing so, we have taken extraordinary steps to ensure our stores are supplied with ample PPE and that enhanced health and safety measures are in place as we begin to warmly welcome back our team members and customers.”
Hudson said it has further evolved its digital footprint with contactless shopping environments, while providing 24/7 access to health and safety supplies through the roll-out of PEE vending machines.
Hudson’s PEE vending machines
In a further sign of the retailer pushing ahead with growth plans, Hudson highlighted it has successfully extended existing contracts with Charleston International Airport, Des Moines International Airport, Myrtle Beach International Airport and Atlantic City International Airport.
It has also added two travel convenience stores in the new arrivals and departures hall at LaGuardia Terminal B, two travel convenience stores and two speciality retail stores at Los Angeles International Airport Midfield Satellite Concourse and four travel convenience stores at the Atlantic City International Airport. The retailer also announced its partnership with Luxottica earlier this week, which will see it open 250 Sunglass Hut shop-in-shops.
Fordyce added: “While the effects of this global health crisis are unprecedented, the Company and our management team have overcome significant business downturns in the past. Thanks to the ongoing support of our team members, customers, business partners and landlords, we are in the early stages of our road to recovery and remain confident in the long-term strength of our business model and the resiliency of the travel retail industry.”
in Airports, Financial News, Latest News, North America, Regions