Country Road, one of Australia’s most famous clothing stores, is having a rough time right now. The brand that used to be extremely common is closing down a number of stores in Sydney due to sales are still low. These store closings are part of a larger trend of retail businesses in Australia that are having a hard time. Country Road’s situation is a good example of how tough things are for many Australian brands right now.
Store Closures – A Big Move in the Face of Falling Sales
Country Road is closing its stores because it needs to cut costs because sales are low. The flagship store in the Queen Victoria Building in Sydney’s busy CBD is one of the brand’s most famous stores. It is one of the stores that will close. This is a big change for the brand, which has been a part of Australian fashion for decades.
Trenery, Country Road’s sister brand, has also closed its store in Mosman, an exclusive area on Sydney’s lower north shore. This is in addition to the store in the Queen Victoria Building. More stores will be closing soon, including a Country Road store in Mosman that is currently being renovated. The Pitt Street Mall store will also close when its lease runs out in 2028.
These closings are a clear sign of how hard things are for Country Road, especially since the company is trying to figure out how to deal with a retail market that has changed a lot in the last few years.
Impact on Business – Declining Sales and Financial Struggles
Woolworths Holdings, the company that manages these stores, is closing them after a year of poor sales. In the first half of the 2024–2025 financial year, Country Road and its sister brands, such as Mimco, Witchery, and POLITIX, saw sales drop by 6.2%. Sadly, this downward trend continued into the second half of the year, with sales falling another 8% in the 26 weeks leading up to December 29, 2023.
The huge drop in operating profits, which fell by a shocking 71.7%, is even more worrying. Country Road’s operating profit for the period was only $14.2 million, a big drop that shows not only a drop in consumer spending but also problems with the brand’s operations.
Changes in leadership – CEO Raju Vuppalapati has resigned.
Country Road had to deal with a lot of problems, including a change in leadership. Raju Vuppalapati, the CEO of Country Road Group, stepped down because of a scandal including how the brand dealt with complaints. Vuppalapati’s departure marks the end of his four-year tenure at the helm, and his resignation came just weeks after the company’s disappointing financial results were made public.
Vuppalapati quit because he was worried about how the company’s leaders were dealing with complaints, especially those about Rachid Maliki, the former head supply chain officer. The CEO’s departure made the brand’s future direction even less clear. Steven Cook, who used to be the co-CEO of Debenhams, was named the new CEO in his place.
Country Road – A Long History of Fashion in Australia
Country Road started out in 1974 as a niche women’s shirt business and quickly became one of Australia’s first lifestyle brands. The brand is known for its stylish and smart-casual clothes, but it is also known for its high-quality home goods and accessories. Country Road grew over time, not just in Australia but also around the world. It was one of the first major Australian fashion brands to open a store in the United States.
Country Road has a long history and a well-known brand, but it has had a lot of problems in the last few years because more people are shopping online and their shopping habits are changing. Sales have been particularly adversely affected by the shift to hybrid working models, which have made business clothes less popular.
The Bigger Problems in Retail – Country Road in the Middle of a Retail Collapse
Country Road’s problems are just one example of a bigger problem that many Australian stores are having. Mosaic Brands, the company that owns Millers, Rivers, and Noni B, is a great example of this. Mosaic Brands went into voluntary administration in October 2024. This meant that 80 Katies stores, 80 stores from Millers, Rivers, and Noni B, and hundreds of jobs were lost.
In March 2024, Jeanswest, another renowned Australian store, closed its doors, putting 600 people out of work. These store closings show that the Australian retail sector is in a deeper crisis. Numerous companies are having a hard time because of inflation, rising costs of doing business, and changes in how customers shop.
A lot of women’s stores, like Ally Fashion, Collette, and Wittner, have also been hurt badly, and some have even gone out of business in the last few months. These problems are made worse by outside economic factors like rising prices and high interest rates, which have made it harder for families to stick to their budgets and spend less on things they don’t need.
Woolworths Holdings – A Parent Company That Is Losing Money
The South African company Woolworths Holdings owns Country Road, Mimco, Witchery, and POLITIX. Its performance has also gone down. As previously mentioned, the company reported an 8% drop in sales for the 26-week period ending December 29, 2023, while operating profits fell by nearly 72%.
The problems that Woolworths Holdings is having are not just with Country Road. A lot of the company’s brands are having trouble keeping up with the changing retail landscape, and people are more worried about the future of some of its brands.
The Trenery Property in Mosman has an impact on real estate
The old Trenery store in Mosman, which closed last month, is now for sale, along with other stores that have closed. The property, which is called a “rare and historic” commercial property, has been on the market for the first time in more than 50 years. This sale shows the bigger problems that retailers face with real estate. They are trying to cut costs and make the most of their retail space.
Can Country Road make a comeback in the future of Australian retail?
Country Road’s problems show how hard things are still for the Australian retail sector. Country Road still has a loyal customer base and a strong reputation as a high-end lifestyle brand, even though it has had to close stores and has had money problems.
The question is whether Country Road may come back from these problems or if it will keep struggling with falling sales and rising costs of doing business. Country Road is trying to adjust to the new retail environment through altering its leadership and continuing to focus on cutting costs. But since the whole retail sector is having similar problems, it may take Country Road a while to get back on its feet.
Retailers Will Have a Hard Time Ahead
Country Road’s problems aren’t new. The Australian retail industry as a whole is going through a lot of changes, and many well-known brands are having a hard time staying in business. We don’t know how Country Road, Mimco, and Witchery will change in the next few years as they deal with falling sales, high operating costs, and changing customer tastes.
The closing of Country Road’s flagship store and other stores in Sydney is another blow to an Australian brand that used to be very well-known. But there may still be hope for a recovery if the right changes are made. Only time will tell.