Latest news with #CountryRoad
Daily Mail
3 days ago
- Business
- Daily Mail
How Country Road went from cult classic to fashion forgettable largely thanks to a cost-cutting decision more than 20 years ago
Country Road is fighting for its future largely thanks to a cost-cutting decision the company made more than 20 years ago, an expert says. The once-beloved Aussie brand is in clear trouble, with Country Road Group reporting in March its earnings were down almost 72 per cent at $14.2million for the last half of 2024. One of its longstanding flagship stores at Sydney CBD's Queen Victoria Building has shut up shop, as has sister brand Trenery in Mosman, on Sydney's affluent lower north shore. Another CBD store in Sydney's Pitt Street Mall is expected to close when its lease expires in three years' time. Queensland University of Technology marketing expert Gary Mortimer said Country Road had lost its iconic Australian lifestyle brand status since Woolworths Holdings took a controlling stake in the late 90s. A cost-cutting move to manufacture offshore gradually eroded its 'Made in Australia' appeal and weakened the brand's authenticity, Professor Mortimer said. 'Since its launch in the mid-1970s, Country Road clothing was primarily made in Australia, specifically, the iconic chambray shirt which I and nearly every other young man had during that time was made here using Australian cotton,' he said. 'The company emphasised its commitment to Australian manufacturing during that time. 'Much of that production has shifted to Bangladesh, China, India and Pakistan under new ownership, essentially losing the essence of what Country Road stood for.' Professor Mortimer said a shift to lower prices in the early 2000s to boost sales had signalled to loyal shoppers that 'potentially the quality is no longer there'. 'Today, Country Road is a mainstream fashion retailer, medium pricing, mostly offshore manufacturing and now competing with other middle-market mainstream fashion retailers,' he said. 'They haven't brought their core customers along on a journey. 'Essentially those customers, like I, who were buying Country Road in the mid-1980s, are now aged in their 50s and are shopping different brands. 'Unlike RM Williams, who acknowledged an ageing core customer, and actively began targeting 25-35 year olds to fill that gap Country Road haven't revitalised their brand.' Consumer behaviour analyst Barry Urquhart advised Country Road founder Stephen Bennett on the brand back in its heyday. Founded by Bennett in Australia in 1974, the business began in Hawthorn, Victoria, with the first standalone store opening in nearby Armadale. Bennett's vision was to create quality clothing designed for an Australian way of life, with the classic cotton chambray shirt released in 1984 an enduring wardrobe staple. Mr Urquhart said this laid the foundation for the brand's success as a lifestyle brand, at times referred to as the Ralph Lauren of Australia. The company expanded to the USA in the 1980s and by 1987 was listed on the ASX. Last year it marked its 50th anniversary. A year on from that milestone birthday, Country Road is on the brink of collapse, Mr Urquhart said. 'The brand has left itself exposed and vulnerable,' he said. 'It's lost its Australian accent, its identity and point of difference.' Mr Urquhart said the brand could survive but it would need a lot of investment. 'The answer doesn't lie with loyalty programs,' he said. 'It is imperative that the Country Road brand articulates its values and defines its unique and differentiated market position.' Mr Urquhart said the brand needed to formulate and project a compelling statement to stimulate relevance and demand. 'The brands, bricks 'n' mortar stores and product range need to promote the emotive and subjective attributes of touch, smell, colours and look,' he said. 'Fashion is a moving feast. Country Road needs to be dynamic, malleable and compelling.' Professor Mortimer said to survive, Country Road should follow RM Williams' strategies to innovate ranges and target a younger market. He said the company, which has blamed its poor sales results on a 'retail recession' it claims hasbeen running for two years, should also collaborate with iconic Australian and First Nations designers and commit resources to Australian manufacturing. Since news broke of its flagship store closing in Sydney, the company assured customers that its retail footprint is being expanded in Sydney, Brisbane, Melbourne and Adelaide. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' a spokesperson told Daily Mail Australia. 'We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year.' Country Road Group has been contacted for further comment.
Sky News AU
15-07-2025
- Business
- Sky News AU
Major Aussie retailer reveals multiple new stores in pipeline following shock closure of flagship location in central Sydney
A major Aussie retailer has revealed it will be opening multiple new or refurbished stores by the end of the 2025, amid plummeting sales. Country Road Group, behind popular fashion and lifestyle chains including Country Road and Witchery, is set to close one of its flagship stores in Queen Victoria Building in Sydney's CBD. The retailer's lease on its Pitt Street Mall Country Road store is also set to expire in 2028. It comes as sales for the chain, which is owned by Woolworths Holdings Limited, fell 6.2 per cent for the first half of the 2024-25 financial year. An 8 per cent drop in sales was recorded for the 26 weeks into December 29 last year, and operating profits fell 71.7 per cent to $14.2 million. However, it has now been revealed that Country Road Group is planning to open a number of new stores within months, with a spokesperson saying the retailer will expand its bricks-and-mortar presence in a handful of major cities. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' a spokesperson has said. 'We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year.' New store locations planned by Country Road Group include on Brisbane's Queen Street Mall in August and new Country Road, Trenery and Witchery Chatswood stores at Chatswood Chase in Syndey's north in October. A refurbished Country Road Mosman will open its doors in September, while the chain's Eastland store will move to a larger store next month, and a larger and refurbished Burnside store will open at the Burnside Village redevelopment in October. New Trenery, Mimco, and Politix stores will also open in November as part of a relaunch of 260 Collins St shopping centre in Melbourne. Regarding the company's lease on its Pitt Street Mall location, the spokesperson said Country Road Group will attempt to move the store elsewhere if a 'change is required'. 'Country Road Pitt Street Mall has a lease in place for the next three years, until August 2028. If a change is required due to the end of lease, our aim will be to find a suitable new location,' the spokesperson said. Country Road, which began in 1974 as a niche women's shirting business, now has 653 stores throughout Australia, South Africa and New Zealand. The company has established itself as a well-known lifestyle brand renowned for stylish, high-quality apparel, accessories and homeware.
Daily Mail
15-07-2025
- Business
- Daily Mail
Country Road issues a major update to customers after shutting stores
Country Road Group will open 10 new or refurbished stores within months, amid fears the embattled fashion retailer is on the brink of collapse. The iconic brand that has been an Aussie wardrobe staple for more than half a century has shut down several stores in recent months, amid plummeting sales during its worst financial years on record. One of its longstanding flagship stores at Sydney CBD's Queen Victoria Building has shut up shop, as has sister brand Trenery in Mosman, on Sydney's affluent lower north shore. A Country Road outlet in the same suburb is currently closed for renovations, while another CBD store at Pitt Street Mall faces an uncertain future when its lease expires in three years' time. The company has since assured customers that its retail footprint is being expanded in Sydney, Brisbane, Melbourne and Adelaide. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' a spokesperson told Daily Mail Australia. 'We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year.' A new Country Road flagship store will open in Brisbane's Queen Street Mall next month, followed by the reopening of the 'beautifully renovated' Mosman outlet in September. Elsewhere on Sydney's north shore, new Country Road, Trenery and Witchery stores will open at Chatswood Chase in October as part of the centre's redevelopment. In Melbourne, Country Road Eastland will relocate to a larger location next month while new Trenery, Mimco and Politix stores will open in the CBD at 260 Collins St in November. In Adelaide, an expanded and refurbished Country Road Burnside store will open in October. No other reason was given for the recent closures at Sydney's QVB and Mosman, which lasted just three years. The future of Country Road Pitt Street Mall beyond August 2028 remains unclear. 'If a change is required due to the end of lease, our aim will be to find a suitable new location,' the spokesperson added. The closures and openings cap off a turbulent year for the Woolworths Holdings-owned retailer, which also includes fashion brands Mimco, Witchery, and POLITIX. Sales across the brands plummeted by 6.2 per cent in the first half of the 2024–25 financial year, citing economic and operational headwinds. The news comes just weeks after Country Road Group chief executive Raju Vuppalapati announced his resignation, amid a lingering scandal over complaints handling by executives. Mr Vuppalapati will depart at the end of August to pursue 'personal interests' after four years in the top job, news that reportedly sparked relief from some staff. Last October, he warned that the group was facing a 'perfect storm' of challenges after recording its worst financial year on record. The downturn followed an external investigation launched in May 2023 after complaints were made against former chief supply chain officer Rachid Maliki. A number of employees threatened to leave the company in protest. Country Road was founded in 1974 as a niche women's shirting business that has grown into Australia's first lifestyle brand, renowned for its high-quality apparel, accessories, and homeware. The retailer was also one of the first major Australian brands to open in the US. Woolworth Holdings Limited (South Africa) (WHL) secured a controlling interest in Country Road in 1998. Country Road Group has vowed to buck the trend following the collapse of dozens of other fashion retailers in recent months. Hundreds of Rivers, Katies, Noni B and Millers stores have closed across Australia in recent months after parent company Mosaic Brands made major cuts to 'consolidate' its business. Thousands of retail jobs were slashed in the process.
NZ Herald
15-07-2025
- Business
- NZ Herald
Fashion retailer Country Road closing some Australian stores: Is New Zealand affected?
Fashion retailer Country Road says plans to close a number of Australian stores do not affect those in New Zealand. It comes as the brand's South African owners, Woolworths Holdings, review its retail store portfolio amid challenging economic conditions. Sales across the Country Road Group, which also includes brands Mimco,
Time Out
15-07-2025
- Business
- Time Out
Which Country Road stores are closing in Australia? Full list of stores shutting for good
It's been a tough year for Australia's retail industry. In 2025, a bunch of household names have shut up physical stores across the country, from Rivers and Millers to Ally Fashion, Jeanswest and SurfStitch. Now, Country Road has joined the list. Founded in 1974, this beloved Aussie lifestyle brand is known for its stylish, smart-casual clothing and accessories, along with its sleek homewares sold under its sister brand Trenery. Country Road currently has 653 stores across Australia, New Zealand and South Africa. But after a significant slump in sales, the lifestyle brand is preparing to close its first batch of stores, including a longstanding flagship store in Sydney's CBD. Why is Country Road shutting stores? Sales across the Country Road portfolio declined by 6.2 per cent in the first half of the 2024-25 financial year, followed by a further 8 per cent drop in the 26 weeks to December 29. Meanwhile, operating profits also took a major hit, plummeting by a major 71.7 per cent to just $14.2 million. Which Country Road stores are closing? For now, Sydney is the only city impacted by the store closures. In an attempt to minimise costs, Country Road will close down one of its longstanding flagship stores inside the Queen Victoria Building in the CBD. Additionally, its Pitt Street Mall store is set to close in 2028 when the lease runs out. Finally, Country Road's sister brand Trenery closed its Mosman store on Sydney's Lower North Shore last month. That's not to say it's the end for Country Road. The popular Aussie brand actually plans to reopen its Mosman Country Road store in September after renovations, and it's on track to open a new flagship store on Brisbane's Queen Street in August and three new stores at Chatswood Chase in Sydney this October. 🧀
