Latest news with #WoolworthsHoldings
Daily Mail
5 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.
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,
7NEWS
14-07-2025
- Business
- 7NEWS
Country Road breaks silence over store closures and plummeting sales
Country Road has sought to allay fears the beloved brand is going out of business, amid a number of store closures across Sydney and plummeting sales in its latest results. The brand, which has been a staple in Australian households since its inception in the 1970s, has closed its Market St store at the entrance of the Queen Victoria Building in Sydney. Country Road's Military Rd store in Mosman is closed for renovations and its Pitt St Mall store is earmarked to be shut when the lease expires in 2028. But far from lessening its retail footprint, the brand was expanding, Country Road told 7NEWS on Tuesday. 'From time to time, we review our retail store portfolio to ensure we're continuing to meet the needs of our customers,' Country Road 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. 'This includes our beautifully renovated Mosman store reopening in September, a new Country Road flagship store in Queen St, Brisbane, opening in August and three new stores opening in Chatswood Chase in October.' Country Road and Trenery are owned by South Africa's Woolworths Holdings, which previously owned department store David Jones. Johannesburg-based Woolworths Holdings also owns Mimco, Witchery, and POLITIX. In its latest results, Woolworths Holdings revealed an 8 per cent fall in sales for the 26 weeks to December 29 last year. The brand's operating profit plunged almost 72 per cent to just $14.2 million. Country Road, founded in 1974, is known as one of Australia's most beloved lifestyle brands and one of the first local brands to tackle the American market.
7NEWS
14-07-2025
- Business
- 7NEWS
Country Road shuts a number of stores in Sydney amid plummeting sales
Major retailer Country Road has shut a number of its Sydney stores amid plummeting sales. According to a report in Sydney Morning Herald on Monday, the iconic brand has closed its Market Street store at the entrance of the Queen Victoria Building in Sydney. Sister brand Trenery has shut its Military Road shops in Mosman, on the city's lower north shore. Country Road's Military Road store in Mosman is closed for renovations. Its Pitt Street Mall store is earmarked to be shut when the lease expires in 2028. Country Road and Trenery are owned by South Africa's Woolworths Holdings, which previously owned department store David Jones. Johannesburg-based Woolworths Holdings also owns Mimco, Witchery, and POLITIX. A hybrid work style is said to have negatively impacted sales of the brand, with less need for corporate business wear. In its latest results, Woolworths Holdings revealed an 8 per cent fall in sales, which take into account the 26 weeks to December 29 last year. The brand's operating profit plunged almost 72 per cent to just $14.2 million. Country Road was contacted by for comment. Country Road, founded in 1974, is known as one of Australia's most beloved lifestyle brands and one of the first Aussie brands to tackle the American market.
Daily Mail
13-07-2025
- Business
- Daily Mail
Country Road shuts down stores across the country as retail apocalypse strikes Australia
Iconic fashion retailer Country Road has shut down a number of stores amid plummeting sales. 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 also currently closed for renovations, while another CBD store at Pitt Street Mall is expected to close when its lease expires in three years' time, the Sydney Morning Herald reported. Daily Mail Australia has contacted Country Road Group for comment. The closures 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. It also comes just weeks after Country Road Group chief executive Raju Vuppalapati announced his resignation amid a lingering scandal over complaints handling by executives. 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. It was also one of the first major Australian brands to open in the US. More to come.
