News

Larry Kestelman's LK Group has acquired fashion retail house Brand Collective for an undisclosed amount.

The acquisition is the second in the fashion space for Kestelman, following his purchase of PAS Group in October 2020. 

Brand Collective houses a mix of owned-brands and licensed brands including Superdry, Clarks, Hush Puppies, Elwood, Volley, Shoes & Sox, Shoe Warehouse and Mossimo. 

The business employs more than 1,200 people across its operations which include product design, supply chain, warehousing/distribution and wholesale, retail and eCommerce stores.

Kestelman's acquisition of Brand Collective – which has a focus on footwear – will complement PAS Group's focus on fashion. 

"PAS is about 70% fashion and 30% shoes, [Brand Collective] is about 70% shoes and 30% fashion," Kestelman told the Australian Financial Review.

"Between the two businesses, we’ll end with about 50/50 shoes and fashion and 50/50 between retail and wholesale operations. 

"We’ll now have in the group 250 free-standing stores and 117 concessions in department stores and a comprehensive online and wholesale business," he told AFR. 

The acquisition comes as no surprise to many, after Kestelman told Ragtrader in January that he was interested in pursuing further buyouts. 

"We're looking to grow; we're looking to bolt-on brands and if we believe it's a great brand and we can add value to it we are certainly interested in acquisition," he told Ragtrader in January. 

"At a time where a lot of retail is struggling and going backwards, I think we've got a great supply chain and we do things pretty well.

"If there's businesses out there that we think we can add value to, we are certainly interested in looking at anyone who's thinking of selling out or bringing licenses to Australia.

"We're private equity company, we've got the capital to do it," he said. 

Based on this second acquisition, it would appear Kestelman has an appetite for fashion businesses that have a mix of owned and licensed brands. 

PAS Group owns Review, Black Pepper and Yarra Trail and also manufactures for brands including Everlast, Lonsdale and Slazenger through its licensing business Designworks. 

• Australia’s Generation Z shoppers have the highest ethical fashion consumption index score of any age cohort, a new report states.
• Baby Boomers and older Australians ranked lowest, according to the 2021 Baptist World Aid Australian Ethical Consumption Report.
• The findings suggest major manufacturers and retailers will need to adjust their practices to keep up with changing tastes and ethical mores

Australians in Generation Z are far more likely to focus on ethical fashion consumption than their older counterparts, according to a new report, suggesting retailers and manufacturers may have to alter their business practices to keep up with changing consumer demands.

In its latest Australian Ethical Consumption Report, released Monday, not-for-profit Baptist World Aid and research firm McCrindle state Aussies under the age of 26 had the highest ‘ethical consumption index’ score of any age cohort at 69/100.

The score ranks how likely respondents are to consider issues like child labour, environmental impact, and the use of living wages when considering their next fashion purchase, and how likely they are to match those beliefs with actual spending.

Generation Y and Generation X, spanning between ages 27 and 56, registered scores of 67 and 62, respectively. Baby Boomers notched a score of 58, while Australians over the age of 76 registered an index score of 55.

“We see younger generations, and women, more open to changing their habits” to align with the values of a “fair go for all”, said McCrindle spokesperson Ashley Fell.

The findings comport with consulting giant McKinsey’s State of Fashion 2021 report, which found the most successful firms will “be those that get a grip on the trends shaping the fashion landscape”.

Those firms will emphasise the “importance of sustainability through the value chain” and ” treat their workers and the environment with respect”, the report states.

The Baptist World Aid report also echoes the rise of online secondhand marketplaces in Australia, which bill themselves as facilitators of circular and sustainable fashion.

Depop, a digital marketplace which lets sellers list pre-loved designer garments, claims one in four Gen Z Australians have already signed up.

Competitor Poshmark, which launched in Australia early this year, claims to have kept more than 90 tonnes of jeans from landfill.

Three in five consumers have become more aware of the real-world impact of their fashion purchases in the past three years, Baptist World Aid states.

Survey respondents overwhelmingly said corporations are responsible for ensuring ethical practices in the fashion industry.

68% of those tallied said manufacturers and retailers are on the hook for those guarantees, while just 41% said the main responsibility falls on consumers.

But as younger consumers tailor their spending to mirror their beliefs, major roadblocks are keeping Australians from wearing their hearts on their sleeves.

A full 87% of those surveyed indicated they want to alter their spending habits to consume fashion more ethically, but just 46% said they regularly give their money to brands with ethical and sustainable bona fides.

Not knowing which brands use ethical sourcing, the cost of purchasing those goods, and the perceived difficulty of accessing ethical threads in-store are all keeping Australians from making good on their beliefs, Baptist World Aid states.

Fund manager AMP Capital has completed close to $1 billion in redevelopment of two major malls in Sydney and Perth over the past two months in a big vote of confidence that the retail sector will eventually outpace its current travails, according to its head of real estate Kylie O’Connor.

Seven years in the planning and three years in construction, Karrinyup shopping centre in Perth opened 60 stores on Thursday, the first stage of an $800 million redevelopment that will be completed in October. With around 290 retailers, Karrinyup will be one of the largest shopping and lifestyle destinations in Perth.

“We will meet the brief of being one of the most dominant assets in the Western Australian market,” Ms O’Connor told The Australian Financial Review.

Last month AMP Capital put the finishing touches on its development of Marrickville Metro in Sydney’s inner west, a $142 million project that will add 11,000 sq m of retail floor space,

Both projects were steered by the fund manager on behalf of UniSuper, its mandate client, and represent significant investment into a sector that has been buffeted by a longer-term shift in consumption patterns toward e-commerce, along with the sharper disruptions caused by pandemic lockdowns.

A strong bounceback in foot traffic across its malls after the lifting of earlier lockdowns vindicates a confidence that major malls will perform well for their investors over the longer term, according to Ms O’Connor.

“We are confident that certain retail assets – dominant, strong retail assets with the right fundamentals like Karrinyup – over the long term will absolutely deliver for investors,” she said.

“Yes, you get short-term pain over periods like this, but if you are looking over the long term, we think it’s the right story if you have the right asset.”

Surveys by AMP Capital explain why customers are coming back to major malls as customers ease. It’s to mingle, meet, interact, and soak up experiences they can’t get online or in the comfort of their own homes.

“For most of these large shopping centres, over the last five to 10 years, the mix has materially changed. It’s less about shopping and more about non-retail services.”

The revamp at Karrinyup will double its footprint from 59,874 sq m to nearly 110,000 sq m. The project will bring together major brands, including Sephora and Lego, as well as Zara, H&M, Uniqlo, and Mecca. The redeveloped mall will also house Perth’s first Tesla supercharger station.

Ms O’Connor acknowledged the challenges of leasing up such a vast retail space during a period of disruption, but said East Coast-based retailers were buoyed by Western Australia’s relative resilience through the economic disruption of the pandemic.

“That offset the nervousness of retailers to go and open stores,” she said.

Takeover target Australian Pharmaceutical Industries’ (API) shareholders are holding out hope that retail powerhouse Wesfarmers will return to the table with a higher offer after having its initial bid rejected by the company’s board.

API, which owns the Priceline pharmacy chain along with a range of skincare clinics, knocked back Wesfarmers’ surprise $687 billion takeover bid on Thursday, telling the Perth-based conglomerate to come back with an offer that appropriately valued the business.

Wesfarmers, which owns retail chains such as Bunnings and Kmart, first announced its desire to acquire API two weeks ago, offering an unsolicited $1.38-a-share deal in a move to kick off the company’s foray into the healthcare and pharmaceuticals space.

At the time, analysts and shareholders suspected the bid was opportunistic and did not reflect the true value of API - a view the board agrees with, telling shareholders a detailed analysis of API’s underlying value had found the offer was too low and “not compelling”.

API said the bid was “opportunistic” in its timing of the offer given API’s weak performance in light of recent COVID lockdowns, and pointed to a predicted improvement in trading performance as conditions improve. It also noted the “strategic value” of the company’s Sister Club loyalty program. Wesfarmers has a significant loyalty operation through its part ownership of Flybuys.

“The board will only progress a change of control transaction on terms that recognise the fundamental value of API and are in the best interests of API shareholders as a whole,” the company said. Shareholders were told to take no action.

Simon Conn, portfolio manager at API shareholder Investors Mutual, said he thought it likely Wesfarmers would come back with a higher offer.

“The response today from the board shows that they think there’s more value there,” he said. “And now it’s a matter of sitting down with Wesfarmers and working out a path forward to try and encourage them to see where the value is.”

Similarly deputy head of investments at Van Eck, Jamie Hannah, agreed that another bid was likely on the way from Wesfarmers if the retailer was serious about its acquisition.

“Wesfarmers will have to go back to the drawing board and assess the cash flow and whether or not they really want to go into the healthcare space in this way,” he said.

A spokesperson for the Wesfarmers said the company was still considering the API announcement but noted it “continues to believe the Wesfarmers offer is compelling for API shareholders”.

But Wesfarmers may not be the only party interested in the pharmacy operator, Mr Conn says. The fund manager believes another company could also lob a bid for either the entire API business or just part of it.

“There could be an acquirer who is willing to pay a higher price than maybe what Wesfarmers was offering for just part of the business,” he said. “It depends how you extract the value.”

“But it’s clear there’s an auction that’s been started and it’s now up to the board to get maximum value for shareholders.”

Woolworths (South Africa) has revealed that Australia's closed international borders have driven "inward-focused consumption," boosting retail spend in its brands David Jones and Country Road Group. 

In a trading update for the 52 weeks ended 27 June 2021, Woolworths revealed that both brands experienced an increase in sales during the period, despite extended lockdowns and subdued footfall in CBD and airport locations. 

David Jones sales over the 52-week period increased by 2.3% and by 0.9% in comparable stores, with second half sales up by 17.1%. 

DJs' online sales increased by 24.4% and contributed 17.3% to total sales for the current year.

"In line with our stated intention of exiting unproductive space, trading space was further reduced by 6.3%," Woolworths said in a statement. 

"Sales in our Elizabeth Street flagship store grew by 16.6% during the current year," the business said. 

Meanwhile, Country Road Group also saw a strong lift in sales during the period, seeing sales growth of 13.4% over the current year and by 15.3% in comparable stores, with second half sales up by 39.5%. 

Online sales increased by 30.7% and contributed 29.7% to total sales, while trading space was reduced by 2.8% for the current year.

"This result was underpinned by the robust performance of the Country Road brand and through refreshed product offerings across all brands," Woolworths commented on the CRG results. 

Currently, Woolworths South Africa is facing the impact of civil unrest in the country. 

"WHL echoes the sadness and deep concern expressed by many over the civil unrest in the province of KwaZulu Natal (KZN) and parts of Gauteng, which escalated into widespread looting and destruction of property in the affected areas," the business commented. 

"This has had a significant impact on our operations in these areas, particularly in KZN, as well as on our employees, customers and the broader community. 

"We are grateful that none of our employees in these affected areas suffered any injury.

"All of our stores in KZN as well as a number of stores in Gauteng last week had to temporarily close, prioritising the safety of our employees and our customers. 

"Our online delivery services and certain suppliers in those areas are also significantly affected given significant damage to their assets. 

"Eleven Woolworths stores have been looted and severely damaged with nine of the eleven stores in KZN and two in Gauteng. 

"Although looters gained entry to the Woolworths Maxmead Distribution Centre (DC) in KZN the infrastructure was not severely damaged and has been secured, together with our other DCs. 

"Operations have resumed and we have prioritised the provision of food into KZN," Woolworths said in a statement. 

Oroton has revealed that it has appointed Jenny Child as its incoming CEO.

Child will replace outgoing CEO David Kesby in October. 

Child joins the brand after it has experienced significant growth under Kesby's leadership, which includes 20% like-for-like growth over FY21 and the growth of the online channel which now represents over 25% of total revenue.

With Kesby at the helm, Oroton also diversified its accessories business with the successful introduction of a luxury apparel range, which was celebrated at Australian Fashion Week in June.

Joining the brand at such a pivotal time, Child will bring her extensive global experience in retail transformations, following 14 years at McKinsey & Co. 

During her time at the firm, Child worked with retailers to put consumer-centric strategies into action, navigate disruption and use data and technology to accelerate growth. 

Speaking on her appointment, Child said she was excited to join the company and drive the next stage of growth. 

"I’m thrilled to be joining Oroton. 

"What David, Sophie and the team have done in the last few years to refresh the relationship with consumers and plant new seeds in the business is truly impressive. 

"The momentum in the business plus today’s digital tailwinds mean that we have a fantastic opportunity ahead of us, and I’m excited to be part of shaping Oroton’s next era of growth," she said. 

Kesby will depart the business as a friend of the brand and leadership team. 

"I was pleased to join Oroton under the ownership of Will Vicars in 2018 with a directive to rebuild the team, modernise technology and infrastructure and shift this iconic brand to an agile business with an innovative culture and a focus on the customer," Kesby commented. 

"I am proud of the critical foundation work we have achieved and am leaving the business with a positive legacy and elevated trajectory.

"With a progressive digital growth strategy in place, I knew it was the right time for me to suggest a baton change.

"I look forward to the continued success of Oroton under Jenny’s stewardship," he said. 

Oroton owner Will Vicars thanked Kesby for his work and welcomed Child to the role. 

"Oroton is at a pivotal moment in its future, and to David’s credit, the business is well prepared to step into a new era. 

"David reengineered Oroton from a difficult place to what it is now; a well-oiled and rebuilt team. 

"He did this faster than we had expected and the company now looks forward to aggressively accelerating its online and international presence.

"With the appointment of Jenny Child into the CEO role, I am confident she will drive results to project the brand forward in today’s disruptive and fast-changing consumer environment. 

"During this period of accelerating Oroton’s transformation, the Board and I believe Jenny is the ideal incoming CEO to lead Oroton’s next chapter of growth and success," he said. 

Child will step into the role in October. 

Retailers are calling for mandated rent relief from landlords as lockdowns in three states threaten to stretch on for weeks, decimating sales at bricks and mortar stores.

While the federal and state governments have offered support packages for stood-down workers and grants for small businesses, retailers say there has been no suggestion that landlords should be forced to share the pain by providing rent relief.

“In 2020 we had the mandated Leasing Code of Conduct and acknowledgment that there should be a sharing of the financial pain of lockdown between tenants and landlords,” said Melbourne retailer Kelley Langeliers.

“This time round? Nothing. And no one is speaking about this surefire business killer,” said Ms Langeliers, who owns a lifestyle and homewares store in Melbourne’s Mornington.

“We are being handed grants by the government, only to hand those grants and whatever cash is left in our businesses to pay full rent to landlords who have no imperative to participate in ‘sharing the pain’ this time,” she said.

What started out as a personal blog for Jessica Sepel during her studies in health and nutrition over 10 years ago, laid the foundations for what is now leading wellness and lifestyle brand JSHealth. 

The small but loyal community of followers Sepel built up over the years now stands at more than a million.

“I’m very grateful for that because the community could see that I had a genuine desire to help. The product is an extension of that and it happened eight years after building that community,” Sepel told Inside FMCG.

Sepel, a clinical nutritionist by trade, launched JSHealth in 2018 alongside her husband Dean, as co-founder and CEO.

Today, the brand boasts 16 vitamin formulas and the JSHealth app, a subscription offer that includes a digital nutrition clinic, healthy recipes, daily meal planners, workouts, guided meditations and more. 

Reinventing vitamins

Through her work as a nutritionist, Sepel learned about the benefits of therapeutic doses of vitamins and went on to develop a range of her own featuring the purest ingredients. The products have proven popular not only with consumers but with celebrities from J.Lo to the Kardashians. A JSHealth product sells somewhere in the world every 27 seconds.

JSHealth vitamins are quite different from others on the market, particularly around the packaging and marketing of the products, which lists two areas of concern that the formulation addresses, such as Hair + Energy and Detox + Debloat.

“JSHealth reinvented the space … There wasn’t much innovation in the vitamin sector, it’s quite a traditional market and it can be quite overwhelming. I wanted people to look at our product and know how it was going to help them straight away,” Sepel said. 

“One formulation tackles two big concerns in one, so it’s very important that formulations are specific about the problems they solve. The whole premise of JSHealth is an achievable, sustainable, simplified approach to living a healthy life,” she said. 

With more and more people conscious of looking after their health based on the events of the last year, the business is going from strength to strength. The online business grew by 800 per cent during the pandemic. 

Taking health to the world

The vitamins business is sold direct-to-consumer online and through some boutique bricks and mortar retailers in Australia. Perhaps most impressive about the brand is that 70 per cent of its customers are returning.

The brand has also expanded into overseas markets with an online presence in the UK and US and is soon to sign with major retailers in both markets. Next up is Asia. 

“We’ve only just launched into the UK six months ago so it’s a very new journey for us. But it’s on par with the Australian business in how fast it’s grown, it’s crazy.” said Sepel.

“The next step for us is the Asian market. We started that about two to three months ago but doing that really slowly and carefully.”

The global team, across Australia, UK, US and China, is now 30-strong. 

Strength from setbacks

It hasn’t been an easy ride, however. Sepel said there were many failures along the way. But having to deal with challenging times in her personal life gave her the strength to push forward in business. 

“[These personal issues] actually made me a stronger human being. I always say business is just constant issues, constant challenges, nothing about it is easy, but nothing surprises me any more. I don’t really react when something really horrible happens or stressful happens. Not much can reach out to me at this point, because I’ve had to really strengthen up.”

A passion for health and nutrition is what motivates her to continue to drive the business to new heights. 

“I wake up and I’m so excited to help people live a healthy life. The business is an afterthought.”

Electronics retailer JB Hi-Fi will deliver record sales and earnings growth for FY21, according to preliminary results released to shareholders on Tuesday.

According to the business, sales grew 12.6 per cent over the course of the year to $8.9 billion, while earnings grew 53.8 per cent to $743 million and net profit reached $506 million – a 67.4 per cent growth on a year prior.

Outgoing JB Hi-Fi chief executive Richard Murray, who will jump ship to lead Premier Investments in August, put the group’s success down to its continued focus on the customer, as well as ongoing investments in its online business and supply chain.

“[This has] enabled us to seamlessly meet our customers’ increased demand both instore and online,” Murray said.

“I’d like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I’ve said before, our team members are our number one asset and our most important competitive advantage.”

During the period between April 1 and June 30, however, the group’s Australian businesses struggled with varying lockdowns around the country.

JB Hi-Fi Australia has seen sales drop 7.8 per cent during the fourth quarter so far, while The Good Guys’ sales fell only 1.5 per cent.

JB Hi-Fi New Zealand, however, saw sales grow 46.9 per cent for the same period, cycling out the impact of last year’s Covid-19 lockdown in the country.

All three segments saw growth on a two-year timescale.

Following a successful first half, furniture business Nick Scali has offered Greenlit Brands an undisclosed sum to buy up its Plush Sofas business.

The two businesses are in non-exclusive discussions, and should any transaction take place, Nick Scali said it will likely be able to fund it with cash on hand and debt.

“As previously communicated to the market, the Company actively considers acquisitive growth opportunities from time-to-time having regard to the strategic rationale, available synergies, financial impact and the long-term value created for Nick Scali shareholders,” Nick Scali said in a letter to shareholders.

According to a report in The Australian, the buy-up could be part of a larger divestment by Greenlit which is reportedly also looking to sell off Freedom Furniture, Snooze and Original Mattress Factory.

A Greenlit Brands spokesperson told Inside Retail the group is considering a range of strategic options across its portfolio – including the sale of Plush.

“Greenlit Brands is carefully and methodically analysing all the options and is doing so from a position of strength, as demonstrated by the solid performance across its retail brands in FY20 and continuing through FY21,” the spokesperson said.

“Greenlit Brands will only consider strategic options that would crystallise an opportunity for its brands to grow to the next stage of their development.

Appliances business Winning Group has opened its first distribution centre in New Zealand, signaling the business’ first international expansion.

Plus, the business opened its largest Australian distribution centre in Altona North in Melbourne: a 45,000sqm site boasting 55 loading docks.

Located in Waitemata Port in Auckland, the 6000sqm distribution centre will allow the business to cut middle mile logistics costs and serve the Auckland area much faster.

Winning Group owns and operates the Winning Appliances, Appliances Online, Rogerseller and Home Clearance businesses, and specialises in moving bulky goods.

“Our Auckland DC is ideally located within the Port, allowing us to destuff stock, including MPI clearance, coming into the Ports of Auckland, store, dispatch and deliver stock straight to Auckland-based customers,” said Winning Group’s general manager of operations Mick Bunt.

“We are also servicing delivery outside greater Auckland by facilitating the dispatch of goods ready for line haul.”

Bunt said the business is already providing third-party logistics services for a ‘leading furniture retailer’ in New Zealand, and will aim to build that network out moving forward.

The site in Melbourne, however, was purpose-built over the last year to deliver the best possible shopping experience to its key customers in Melbourne and Victoria at large.

“Both DCs will help to continue the Group’s solid double digit growth and provide our customers and 3PL partners in Australia and New Zealand, with our legendary care and exceptional service,” said Winning Group’s chief operations officer Ryan Fritsch.

Seafolly has released its second campaign with its new global ambassador Lara Worthington.

The 'Live The Beach' campaign celebrates the beach lifestyle and also helps to further Seafolly's sustainability mission. 

The collection is designed in Sydney and features innovative fabrics from Europe, textiles made from recycled fibres and quick dry cups for comfortability. 

Speaking on key styles in the new range, Seafolly said that it has used a range of techniques to develop the new collections in an eco-conscious way.  

"Seafolly’s sustainable approach starts with innovation.

"This season more so than ever, we have invested in new innovative fabrics and processes to further our journey to sustainability.

"The Twilight collection's swim styles have been crafted from a lurex fabrication, developed with a recycled Nylon base are perfect for long summer days in the sun and romantic starlight rendezvous. 

"Meanwhile, Laguna's bold floral print has been digitally printed on a recycled rope style texture base, this collection is tactile, connecting you to nature through style and fabrication," the brand said in a statement. 

The collection is inspired by retro prints, flora and fauna and sporty minimalism. 

Live The Beach launched today and is available now on the Seafolly website, Seafolly Concept stores and selected wholesale partners. 

Bras N Things has partnered with the Women and Girls Emergency Centre (WAGEC), marketing manager Natalie Chalmers told Ragtrader. 

The partnership will see Bras N Things donate profits from the sales of select PJ sets and a dedicated tote bag to WAGEC, helping to further the organisation's work in providing support for women and families in crisis. 

"We're looking to empower women and children to build safe futures, end gender based violence and create a community where women and children are safe to confidently be themselves," Chalmers told Ragtrader. 

"So this is an incredible partnership for us, the women that work at WAGEC are just exceptional with the work they're doing. 

"We saw a lot of those stats that were coming out of last year throughout COVID and lockdown, and it's a space that we can genuinely partner with this charity and really drive change," Chalmers said. 

Alongside the financial donations, Bras N Things will create a 'comfort pack' for women and families accessing WAGEC's services. 

"So there'll be PJs, a little crop, some knickers and socks and they'll be in a tote bag for them," Chalmers added.

"So anytime a customer purchases one of these PJ sets, a percentage of those profits go into creating those comfort packs and all of the rest of the profits go direct to WAGEC and all of the work that they're doing," she said. 

The WAGEC Bras N Things products are available now, with the tote retailing for $7.99 and the PJ set retailing for $64.99. 

In another sign that luxury fashion is working toward a more circular future, French label Isabel Marant recently stepped into resale with Isabel Marant Vintage.

The new digital resale platform, initially created for the French market, aims to extend the life of authentic Isabel Marant garments and accessories, including items from the Isabel Marant, Isabel Marant Étoile and men’s lines.

Though labeled “vintage,” the preowned items available on the site lend themselves well to current trends. Items include 100 percent cotton jeans and denim jumpsuits, white leather cowboy boots and maximalist sequin-covered trousers.

Consumers can exchange their preowned Isabel Marant pieces through the platform for a discount voucher to use toward purchasing new items in stores or online, or on the vintage site. Additionally, deadstock clothing, footwear and accessories from prior collections will be sold on the platform.

“Based upon the notions of sustainability and heritage, this initiative provides an effective solution toward making fashion more circular,” the brand stated on its website.

The secondhand shop launches with a give-back component. Proceeds from Isabel Marant Vintage sales will be donated to the Isabel Marant Endowment Fund that will support women’s education and artisan craftsmanship in indigenous communities.

In November 2020, the designer was criticized by Mexican Culture Minister Alejandra Frausto Guerrero for using a pattern unique to the Purepecha community of northwestern Michoacan state without acknowledgement. The fashion brand responded by asking the community to “accept their most sincere apologies.”

Stepping into the growing vintage market is a strategic move for the French label as secondhand is showing signs of exponential growth. Recent data from online resale retailer ThredUP revealed that in 2020, 33 million consumers bought secondhand apparel for the first time. Secondhand is projected to double in the next five years to $77 billion.

Sportscraft has expanded into the $2 billion women's activewear market with the launch of its first official activewear collection. 

The range marks a significant moment for the brand with Sportscraft being the first brand in Australia to launch an active offering with Liberty Fabrics. 

Sportscraft head of brand Jacolene Le Roux told Ragtrader that the collection marks the start of an expanded partnership with Liberty. 

"Our Liberty partnership is one of the cornerstones of our brand and what we are very much known for so it made perfect sense to continue this relationship for this limited edition range.

"The print we selected works in perfectly with the active styles, while still being flattering on the body but also relevant for our customer. 

"We have been in partnership with Liberty Fabrics for 38 years, so wanted to offer our customer a capsule collection that was not only exclusive, but also that they can trust in terms of being quality investment pieces they can have for life.

"We have some very exciting projects coming up with our Liberty partnership so this active range featuring the prints is just the first hint of what’s to come later in the year - so stay tuned," she said. 

To create the 18-piece range, Sportscraft reflected on its heritage to inform the collection, reimagining the Sportscraft logo into versatile clothing to live and exercise in.

Le Roux added that the brand launched the collection to cater to the new way in which Australians are dressing. 

"Athleisure has obviously become such an integral part of the Australian culture now, that it is a natural extension for us to offer this category in a very Sportscraft way.

"Being Australia’s most established fashion brand, born in 1914, we see ourselves as embodying the best aspects of this lifestyle, so the active range works in seamlessly with our other wardrobe staples," she said. 

The collection features a hoodie, t-shirt, singlet, leggings, track pant, windbreaker, crop top and jumper designs. 

The range comes in colours including mustard, black, white, blue, navy, khaki and Liberty's Elderberry print. 

It is available now and retails for between $69.99 and $129.99. 

Puma Oceania has opened its largest Australian flagship store at Chadstone Shopping Centre. 

The 330sqm store opened its doors to customers last week and showcases Puma's sports heritage with a focus on football, running, training and basketball. 

The flagship also features a dedicated ‘shopper engagement’ space which occupies a 16sqm area in the centre of the store.

The focus of the space, currently showcasing the brand’s AFL club partnerships, will rotate on a regular occurrence to connect with Melbourne’s key seasonal sport and lifestyle events.

The store also highlights the brand's lifestyle collections including Suede, Cali and Mayze as well as key global collaborations with brands such as Peanuts, Porsche and Scuderia Ferrari. 

"The opening of our new Chadstone store demonstrates the confidence we have in the future of bricks-and-mortar retail in Australia," Puma Oceania GM Daniel Gutstein said. 

"We are able to bring Puma's iconic sporting performance and lifestyle credentials to the fashion capital of Australia.

"Puma continues to outperform our growth targets in the region, and the Chadstone store opening increases the Puma brand presence in Australia.

"We have designed the Chadstone store to uniquely balance Puma’s global product portfolio and iconic ambassadors such as Dua Lipa, Neymar Jr and LaMelo Ball, with our exciting domestic partners such as Richmond Football Club, Carlton Football Club, GWS Giants Football Club and Melbourne City Football Club," he said. 

To celebrate the opening of Puma Chadstone the brand ran a through-the-line marketing campaign featuring out-of-home, digital, social media and in store activations giving shoppers the opportunity to win gift cards and prizes.

Business leaders around the country met with treasurer Josh Frydenberg today in the hopes of helping to get Australia’s vaccine rollout moving at a faster pace.

Chief executives from some of the country’s biggest retail businesses, such as Woolworths, Coles, and Wesfarmers, together with business leaders of other sectors, are offering to do inhouse vaccinations for their staff and, in some cases, set up mass vaccination centres in locations central to local population – something retailers are uniquely positioned to offer.

Frydenberg called it a “team Australia moment”.

“Today’s cooperation with the business community came as we moved into a new phase of our Covid response – in particular, the acceleration of the rollout of the vaccine,” Frydenberg said.

“We have about 300,000 Pfizer vaccines coming in each week which will increase to around 600,000 to 700,000 by the end of July and into August and the expectation is around 2 million by October – This is where the involvement of the Australian business community will be so important.

“And today we discussed how we can incorporate an issue such as transport, premises, immunity engagement, as well as communication.”

And, according to the ABC, business in on board with incentivising vaccinations: offering up free frequent flyer points and other things that are worth “more than a snag at Bunnings”.

Business Council of Australia chief executive Jennifer Westacott said it’s important for businesses to work together with the government to help get the vaccine rolled out as fast as possible once supply opens up – with Frydenberg predicting Australia’s weekly supply of vaccines to almost double by the end of July, and to hit two million a week in October.

“[It’s important] that we bring the resources and expertise of the corporate sector and really supercharge the vaccine when the supply arrives in the next couple of months,” Westacott said.

“And today we start doing the preparatory work so we can really get cracking when the supply gets here.”

There have been hints at on-site vaccination centres popping up in retailer’s carparks before, with Bunnings having offered to do so three months ago.

Shadow education minister Tanya Plibersek said she welcomed the roundtable, but said that it is “frankly incredible” that the Government is only just having these conversations.

“You look overseas and you have well over half the population vaccinated, in comparable countries,” Plibersek said, according to the ABC.

“We have a strong health systems. We have a willing population. And we are at the bottom of the pack, internationally, for vaccination rates. It beggars belief.”

Staff were informed on 23 June that a mix of disciplines will be impacted by the restructuring, including around 38 employees across senior buying, established buying, design and merchandising.

Several sources told Drapers the company will begin a consultation next month.

In February, the etailer purchased Arcadia’s Topshop/Topman, Miss Selfridge and HIIT brands, for £265m. At the time, around 300 employees across design, buying and retail partnerships transferred to Asos.

Several industry insiders told Drapers last week that the business brought staff on when the deal completed and is now rationalising the headcount.

Asos declined to comment.

Australian lingerie label Honey Birdette has been acquired by American pleasure and lifestyle company, Playboy Group (PLBY Group) for USD$333 million in cash and stock. 

The acquisition of the 15-year-old business comes as it has expanded and developed its North American and European presence over the past few years.

PLBY Group acquires Honey Birdette as it expects to deliver approximately $73 million of revenue and approximately $28 million of EBITDA for the 12 months ending June 30, 2021.

These results represent growth of over 40% and over 95%, respectively, over the prior year period.

Honey Birdette founder and MD Eloise Monaghan welcomed the deal. 

"When I founded Honey Birdette 15 years ago, my ambition was to build a brand for women, by women; a brand that would serve as a platform for confidence and sexual and body empowerment.

"I am immensely proud of everything we’ve accomplished – with 60 thriving stores across three countries – powered by 350 fierce female ambassadors. 

"Today is a momentous and proud day for the Honey Birdette team as we enter into partnership with one of the world’s most iconic brands and the lifestyle platform it represents.

"I’m thrilled to join Ben and the whole PLBY Group team on a mission to build a lifestyle of pleasure for all," she said. 

The acquisition of Honey Birdette will expand PLBY Group’s brand portfolio and will provide the Group with insights into Honey Birdette's product design, sourcing and direct-to-consumer capabilities that the Group will leverage to accelerate the growth of its core apparel and sexual wellness businesses.

PLBY Group CEO Ben Kohn added that the acquisition will drive growth for the Honey Birdette brand and the wider PLBY Group. 

"We are extremely excited to welcome Honey Birdette to PLBY Group. 

"We strongly believe in the power of brands, and are thrilled by Honey Birdette’s potential to become a multi-billion-dollar luxury lifestyle franchise.

"I’ve been enormously impressed by Eloise and the rest of the Honey Birdette team and the organic, rapid growth they’ve driven.

"Our plan is two-fold: to leverage PLBY Group and the Playboy brand’s global operations to accelerate Honey Birdette’s expansion into new territories and product categories, and to take advantage of Honey Birdette’s superior product design, sourcing and direct-to-consumer capabilities to accelerate our Playboy-branded lingerie, loungewear, swimwear, and sexual wellness go-to-market plans targeting the masstige consumer.

"This acquisition is expected to further our mission to become the leading pleasure and leisure lifestyle platform and our commitment to deliver long-term value to our shareholders," he said. 

Honey Birdette will continue its international expansion during this period, focusing on building its retail footprint across the US, UK and Europe.

In the US, new flagship stores will open in the coming months in Dallas, Miami and New York. 

Honey Birdette will also release new loungewear, swimwear and essentials collections in the coming months. 

The acquisition transaction is expected to close in the third quarter of 2021.

Kathmandu Holdings has revealed the impact the Victorian, New South Wales and newly announced Western Australia lockdowns are likely to have on its trading results. 

Currently, the Group has 40 stores closed in NSW for a minimum of two weeks and 26 stores closed in WA for a minimum of four days.

This follows the Victorian lockdown, which saw 62 stores close for two weeks in early June.  

Due to these closures, the Group expects total sales for FY21 to be below original expectations at approximately $930 million, and underlying EBITDA is estimated at c.$120 million. 

The impact of the New South Wales and recent Victorian lockdowns and associated movement restrictions is estimated to be c.$13 million on EBITDA. 

Kathmandu Holdings Group CEO Michael Daly said while COVID continues to disrupt trading, the business' brands are still tracking well. 

"COVID-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu.

"Excluding these impacts, Kathmandu had a solid start to the winter season, and Rip Curl sales momentum continues.

"Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our Group benefits from a diversified mix of channel and geographies," he said. 

According to the business, Kathmandu was trading broadly in line with pre-COVID-19 levels before Australian lockdowns began to impact the key winter trading period.

Rip Curl and Oboz have continued their strong performance, with the wholesale channel proving strong for both brands. 

Kathmandu Holdings reports that FY22 wholesale orders for Rip Curl continue to show double-digit growth over FY19, while Oboz's wholesale orders for FY22 are significantly above both FY19 and FY20. 

Additionally, Rip Curl's direct to consumer sales in Europe and North America have remained above pre-COVID levels.