The business posted an update on the NZX explaining the impact of the pandemic on the business.
"The company has decided that it will not reopen some under-performing stores across all three segments, to date, five in Australia, three in New Zealand and one in Canada," it said.
"Further store closures are likely across all markets, based on store performance and the outcome of landlord negotiations."
The location of the three New Zealand stores was not revealed but Michael Hill has an outlet in the hard-hit Queenstown on Rees St and some in the market this morning wondered if that store would remain open.
Michael Hill also has several outlets in Christchurch - Cashel St, Westfield Riccarton, The Palms, The Hub Hornby and Northlands.
In late March "all 301 stores globally had temporarily suspended operations. We have been actively planning the reopening of our store network and great consideration has been placed on re-evaluating the store network, customer demographic, and store profitability. We are determined to open the right stores at the right time with the right inventory," the business said.
From tomorrow, nearly 100 Australian stores and 25 New Zealand stores will be open. The rest of the Australian and New Zealand stores will progressively re-open over the coming month. Plans are underway to start gradually opening the Canadian stores from late this month, the business said.
But retailing has been hard hit.
"The company still anticipates an ongoing impact on revenue and profitability due to the uncertainty of the economic landscape," it said today.
"Accordingly, we have been negotiating with all our landlords to reach reasonable commercial arrangements that reflect the reality of the consumer marketplace and trading conditions."
Stores have stickers on the floor to ensure social distancing, more contactless payments are being used, perspex screens are up, products are continually being cleaned and staff trained in new safety procedures.
But there was a bright spot: The company got a big boost in online sales in the last three weeks, outperforming the previous record week from Christmas last year, it said.
"Over the seven-week period of store closures, we took the opportunity to deliver a number of key digital initiatives and we have developed new strategies to grow our business and meet our evolving customers' needs," it said.
Chief executive Daniel Bracken had surgery and would need a reduced work load for the next few weeks. The board had decided not to appoint an acting chief executive in the meantime, the business said.
