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Clothing, footwear and accessories retail turnover rose 2.0% in June according to the latest data from the Australian Bureau of Statistics (ABS). 

This rise follows a 0.2% decline for the sector in May. 

Overall, Australian retail turnover increased 0.4% in June, following a lacklustre 0.1% rise in May. 

Despite the strong results from the Clothing, footwear and accessories category, ABS director of quarterly economy wide surveys, Ben James said that the retail industry is still facing challenges. 

"There were rises in five of the six industries this month, although overall the retail environment remains subdued.

"Rises were seen in Clothing, footwear and personal accessory retailing, Other retailing (0.6%), Cafes, restaurants and takeaway services (0.5%), Food retailing (0.1%) and Household goods retailing (0.2%). 

"Department stores (-0.6%) was the only industry to fall this month," he said. 

Online retail contributed 6.1% to the total retail turnover in June 2019, while in June 2018 its contribution was 5.7%. 

In seasonally adjusted terms, New South Wales (0.3%), Western Australia (0.8%), Queensland (0.4%), Victoria (0.3%), Tasmania (1.5%) and the Australian Capital Territory (0.3%) all experienced rises in June, while South Australia (-0.3%) and the Northern Territory (-0.2%) experienced declines in the month. 

In a statement, National Retail Association CEO Dominique Lamb said that the most recent results show that retail has bounced back. 

"Just hours after some had been declaring that there was a ‘retail recession’, the Australian Bureau of Statistics (ABS) sales figures for June saw a healthy spike in turnover for the month.

"In the final month of the 2018-19 financial year, retail sales soared by 0.4 per cent, a welcome sign following underwhelming results in previous months. 

"But what’s also important to note is that last week’s figures don’t include the impact of the personal tax cuts or the latest reduction in interest rates (both of which took place in July).

"This does not mean that retail is out of the woods and there are still challenges ahead, however, there is reason to be optimistic that retail is breaking from its slumber and is ready to surge in the second-half of 2019," she said. 

Mirvac has reported a 6.0 per cent dip in full-year profit to $1 billion as the property group says trust in its brand is helping sustain it as the residential building industry goes through a rough patch.

Revenue for the 12 months to June 30 was down 1.0 per cent on the previous year to $2.78 billion and Mirvac will pay an unfranked final distribution of 6.3 cents, up from 5.5 cents in the previous corresponding period.

“Despite a challenging market, we have seen sustained sales throughout the financial year, and we achieved our settlement target and maintained our default rate at less than two per cent,” said Susan Lloyd-Hurwitz, Mirvac chief executive.

“This is testament to the enduring quality of our products and our trusted brand.”

The company’s earnings from residential building fell 33 per cent from the previous year to $201 million – a result it said was as expected and due to fewer apartment lot settlements.

Earnings before interest and taxes from Mirvac’s office and industrial division rose 26 per cent and its retail segment edged up 4.0 per cent.

Lloyd-Hurwitz said their retail division delivered another solid result, which is pleasing news given the highly competitive and rapidly evolving retail sector.

“Our commitment to constantly curating retail mixes and creating unique experiences has created a portfolio of thriving retail centres that offers the right retail in the right urban locations – densely populated with low unemployment, high incomes and strong population growth,” she said.

“We are also seeing the increase in value that our retail expertise is able to deliver to our office and residential portfolio.”

Mirvac shares were up 4.23 per cent to $3.325 at 1305 AEST on Thursday.

Australian furniture business King Living has opened its first showroom in Canada, continuing the brand's global roll-out which has seen stores open in Shanghai, Singapore, Malaysia and New Zealand. 

Located in a newly renovated 1000sqm heritage building in shopping district South Granville, Vancouver, the showroom will offer sofa designs, dining ranges, contemporary bed and mattress ranges and outdoor collections. 

King Living chief executive Anna Carrabs said the Canadian launch is a key component to the furniture retailer’s global growth strategy – with Vancouver being the first of many more showrooms in the American region. 

“King Living has already expanded into the Asian market with showrooms in Singapore, Malaysia and Shanghai, which have proven to be very successful in the roll out of King Living internationally,” Carrabs told Inside Retail.

“Showrooms will always be a huge part of the King DNA. We want customers to see, feel, test, and get to know the pieces in the flesh. All our designs are investment pieces made to last, so the tactile experience a showroom offers will always be incredibly important.”

According to Carrabs, the Australian reputation for quality goods has set them apart from international competitors, and has been the driving force behind its global expansion.

“One of our biggest challenges has been challenges has been ensuring we find the right location for our King Living showrooms,” Carrabs said.

“It is so important that our stores reflect our core values and Australian way of life. It took a considerable amount of time to find our showroom in Vancouver.

“We wanted to be part of the vibrant shopping district which features around great galleries and gourmet restaurants so now, King Living is right at home.”

The Executive Director of the Australian Retailers’ Association, Russell Zimmerman, said June retail trade figures from the Australian Bureau of Statistics showing annual growth of 2.55%, with Queensland (5.68%) and Victoria (3.47%) continuing to outpace the country, were best viewed as “mostly positive, with areas of concern.”

Addressing month-on-month figures showing growth in June of 0.4%, after a 0.1% rise in May, Mr Zimmerman said these underlined the ARA’s belief the federal election dampened spending, which was starting to rebound.

“My first point is the “election effect” has now washed out of the retail trade figures, and the numbers for June – with strengthening in both year-on-year and month-on-month indices – underline that,” Mr Zimmerman said.

“That said, whilst the overall picture is positive, these numbers do highlight some areas of concern,” he added.

Mr Zimmerman noted that ARA commentary around patchy but nevertheless positive overall retail trade in recent months appeared to be correct, but stressed that this overall sentiment did not whitewash the fact – borne out by today’s figures – that some parts of the retail sector remained heavily subdued.

“We’ve had comment today, for example, from David Jones that they’re finding it tough; the exit of Debenham’s from Australia in a tough environment for department stores is further underlined by two consecutive months of contraction in that sector, for a year-on-year expansion of just 0.93% ,” Mr Zimmerman said.

“In contrast, continued growth in the café, restaurant and takeaway sector shows strengthening expenditure in a very discretionary category, so we certainly know consumers have money to spend,” Mr Zimmerman said.

Mr Zimmerman said that annual growth in food retailing was being supported by strong growth in supermarket trade (3.81%), whilst a fall in specialised food (-1.55%) possibly reflected the impact of the drought.

“So again, the overall picture is pleasing, but when you unpack it, there are these areas for concern,” he said.

Mr Zimmerman noted that continued year-on-year falls in furniture retail figures (-3.31%) were probably compounded by the effects of an entrenched culture of permanent discounts in a densely competitive sector.

“On the other hand, we’ve seen increases in the clothing (1.89%) and footwear and personal accessories (6.36%) categories, but these may be at the expense of margin due to ‘end of year’ sales,” Mr Zimmerman said.

Mr Zimmerman said he suspected end of financial year sales at reduced margins had similarly compounded the disappointing numbers in the department store sector in today’s June figures.

Mr Zimmerman again noted the longstanding decline in newspapers, books, and other recreational goods, but said substantial growth in sales for pharmacies, cosmetics, toiletries and online reinforced the ARA’s view that these categories – viewed overall – were emblematic of consumers’ shift to online purchases in certain areas.

Mr Zimmerman noted Queensland and Victoria – accounting for 44% of the national population – continued to drive retail sales nationally, and that spending in NSW appeared to be recovering in today’s figures.

“Even so, we remain deeply worried about Northern Territory retailers, who continue to experience declining volumes, and we’re concerned South Australia has declined for two consecutive months, so as I said these figures are mostly positive, but there are certainly areas of concern that we’ll watch,” Mr Zimmerman concluded.

Luxury fashion brand Country Road is tapping into a new market: pre-teen and teen girls and boys. 

The retailer on Wednesday revealed its first-ever Teen Collection, including denim, sweats, t-shirts, dresses, skirts and swimwear for girls and boys aged 8-16. 

The collection closes a gap in Country Road’s previous offering of women’s, men’s and kids fashion and homewares. 

Elle Roseby, managing director of Country Road, called it “a milestone” for the brand. 

“Up until now, Country Road has designed for most children in a family, from newborn to kids, leaving a gap for pre-teens and teens. We’re thrilled to be launching an age-appropriate collection for a fashionably conscious generation whilst demonstrating our connection to the environment,” Roseby said in a statement.

The collection was developed with sustainability at its core, which reflects the brand’s broader commitment to sustainability. 

Denim styles in the first teen collection are made from recycled fibres, meaning a percentage of the denim is made from ‘pre-loved’ denim, and all the t-shirts and heritage sweats in the collection are made from organically grown cotton.

Dresses, denim jackets and denim styles use Better Cotton Initiative denim, and swimwear uses recycled nylon from discarded fishing nets and factory offcuts. 

All items in the collection will be available in-store and online at David Jones from August 8. 

As part of the launch, Country Road is profiling 13-year-old author Bella Burgermeister. Her book Bella’s Challenge offers a kid’s take on the United Nations’ sustainable development goals.

Menswear retailer yd. Australia is unveiling 15 new concession stores in Myer over the next three weeks.

The first concession store opened on Wednesday, August 7, and the remaining stores will roll out in Sydney and Melbourne shortly. 

“yd. is excited to introduce its smart product offering and world-class customer service to Myer customers,” said general manager Vlad Yacubson. 

The concession stores will extend the retailer’s bricks-and-mortar presence beyond the 108 standalone stores it currently operates across the country. 

Yd. this month is also announcing the winner of its nationwide  
#ydcrewsearch campaign to find a new ambassador for the brand. Seven finalists are currently vying for the much coveted title.

“The yd. crew search has been a huge success for the brand. We had over 1500 people apply for the yd. crew search competition and the winner will receive a six-month contract as a key influencer for our brand. We’ve been able to create highly-engaging content using guys who genuinely and absolutely love yd,” said yd. Australia’s head of creative, Jeremy Taylor.

Mike Ashley has emerged as the winner in an auction to buy the UK fashion retailer Jack Wills for £12.7m.

Mr Ashley's company Sports Direct has bought Jack Wills out of administration after competing against Edinburgh Woollen Mill Group.

It will acquire 100 Jack Wills stores in the UK and Ireland and take on 1,700 staff as part of the deal.

It is the latest in a series of struggling companies that Mr Ashley has acquired, with mixed results.

Sports Direct recently admitted that it regretted rescuing House of Fraser a year ago after discovering problems that it described as "nothing short of terminal" - and that it will have to close more stores. 

Commenting on Jack Wills, Sports Direct said: "We will look to work with the landlords to reduce the rents to keep as many stores trading as possible."

The company has 10 stores overseas and KPMG, which is the administrator to Jack Wills, is examining options for those assets.

Suzanne Harlow, chief executive of Jack Wills, said that while the company has worked on improving its financial performance: "The challenging trading environment led us to conclude that the company's long-term future would be best served as part of a larger group and Sports Direct will enable us to do this."

Jack Wills reported an operating loss of £14.2m for the year to 28 January 2018, the most recent results available. 

The company will be housed in a new division at Sports Direct which will focus on buying and building fashion and sports brands.

It will report to Michael Murray, Sports Direct's head of elevation and Mr Ashley's future son-in-law who is engaged to the retail tycoon's daughter Anna.

President Trump said that the US would impose 10pc tariffs on an additional $US300 billion ($440bn) in Chinese goods and products beginning on Sept. 1, after trade talks this week failed to yield any significant results.

In a series of tweets, Mr Trump, who received a briefing from his trade team Thursday, said that negotiators still planned to resume their discussions, as scheduled next month, and expressed his interest in reaching “a comprehensive Trade Deal” with China.

However, he said that China’s promise to increase its purchase of US agricultural products, as well as its promise to stop the sale of fentanyl to the US have fallen short.

Unlike previous rounds of tariffs, which have focused largely on industrial goods, the $US300bn tranche is set to include a host of consumer products, from electronics and cellphones to apparel.

The tariffs would include Apple‘s iPhones unless such phones are granted an exemption or otherwise excluded from the final list. Mr Trump said in July that Chinese-made parts for Apple’s Mac pro computers won’t get exemptions.

The tariffs would also affect practically all the groups of products not hit previously, with the exception of select categories, such as medicines.

Stocks, bond yields and oil prices dropped following Mr Trump’s announcement. The Dow Jones Industrial Average erased a rebound of more than 300 points, oil dropped 6 per cent and the yield on the benchmark 10-year US Treasury note plumbed fresh 2019 lows. The blue-chip index dropped 60 points, or 0.2 per cent, to 26800. The S&P 500 fell 0.4 per cent and the technology-heavy Nasdaq Composite slid 0.4 per cent.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin met this week with Chinese Vice Premier Liu He in Shanghai after a monthslong freeze in trade discussions.

Apart from small steps, however, expectations were low for making significant progress in resolving a trade dispute that has rattled global markets and seen both sides slap punitive tariffs on about half the more than $US600bn in goods they trade.

Speaking to the Fox Business Network earlier Thursday, Mr Trump’s China trade adviser Peter Navarro indicated that the president sees an economic benefit to tariffs.

“Tariffs are good. Tariffs are raising revenues,” he said. “They’re helping defend our steel and aluminum industries. They’re helping us get China to the negotiating — do you think China would be at the negotiating table right now?”

US fashion brand Ralph Lauren is ramping up its presence in Australia with the launch of its first standalone women’s store in Sydney’s CBD last month.

The store, located in the iconic Queen Victoria Building, is part of the transformation over the last five years of the brand’s previously known ‘Blue Label’ into ‘Polo Ralph Lauren for Women’.

“Polo Ralph Lauren for Men is well-established in the Australian market and we see an opportunity for our women’s business to grow as we further expand our offering across different channels,” the brand told Inside Retail.

Four more stores carrying both womenswear and menswear collections are slated to open across the country in September and October. The stores will be located in Indooroopilly and Sunshine Plaza in Queensland, Melbourne Emporium in Victoria and Canberra Centre in the ACT.

“The store openings build on Ralph Lauren’s targeted expansion across Australia and around the world as part of its Next Great Chapter strategy to deliver sustainable, long-term growth and value creation,” the brand said.

The brand told Inside Retail it is committed to the expansion of the Polo Ralph Lauren business in Australia, where it is distributed through owned, standalone stores, as well as through David Jones, Myer and Glue, and online through The Iconic.

The business has a 25-year history in Australia. Initially operating as a licenced brand, Polo Ralph Lauren took back control of the local business in 2013.

The 2019 reporting season is expected to reflect a highly challenging period for retailers, but it could set the stage for a more comfortable FY20, according to analysts at Citi.

Citi analyst Tony Brennan told media on Wednesday that slowing momentum in the last financial year may not reflect the conditions they will be trading under over the next few years.

“While much is negative now, the next two to three years could be far more positive,” Brennan said. 

Retail analyst Bryan Raymond said that in the short term, Citi expects retail to deliver mixed trading updates – which has already been reflected by the likes of Temple & Webster, Kmart, Kogan, and David Jones. 

“While 2h19e was a particularly challenging period, only Kmart, Target, Adiars and Michael Hill downgraded on weaker trading conditions,” Raymond said. 

“Retailers have worked hard on generating cost efficiencies to offset a weak sales growth environment. As a result, we expect the focus of reporting seasons to be on result quality and the read through they provide for FY20e.”

Much of this growth is expected to come from tax refunds and rate cuts putting more cash in consumers’ pockets. This is unlikely to be reflected in August trading updates, and more likely to be fully reflected in future updates in October.

“I know it feels tough out there, but I think things are starting to improve,” Raymond said. 

Citi largely is forecasting a slowdown in like-for-like sales across the broader retail industry – though certain retailers are tipped to buck this trend.

Coles, for example, is expected to see strong growth over the second half of 2019 due to food inflation boosting the industries top line growth.

With the success of Coles’ Little Shop campaign last year, the Little Shop 2 campaign could have a large impact on the quarter, despite Woolworths’ Ooshies campaign occurring at the same time. Raymond called it an “interesting period” for the supermarket.

In terms of the full year, however, Raymond expects fairly low-level growth for Coles, with an NPAT of $897 million – down 4 per cent year-on-year.

Raymond expects JB Hi-Fi’s July trading update to be ‘critical’ to restoring confidence in its earnings outlook, after trade disruption from the election period, weaker activity levels, and an elevated TV deflation.

As such, the retailer’s earnings before interest and tax is expected to decline over the second half of FY19 by 5 per cent, depending on the gross margin recovery of The Good Guys.

“The Good Guys gross margins fell by ~200bps in 2H18, which we expect to recover by 80bps year-over-year in 2H19e,” Raymond said. 

“While the competitive environment has been better, the guidance range indicates this recovery may take longer than expected.”

Dean Blake

"We'd like to measure the annualised value of the customer membership base and its movement," Mr Heraghty told The Australian Financial Review in his first interview since taking the helm from long-serving CEO Peter Birtles in February.

Super Retail Group has appointed former Coles executive Paul Bradshaw as managing director of its Boating, Camping and Fishing (BCF) business.

Bradshaw, who will sit on the company’s executive leadership team, will commence with his role on November 25.

The former supermarket chain exec will replace Ethan Orsini who has occupied the role in an interim capacity since February 20, when Anthony Heraghty was promoted to the role of Super Retail Group managing director and CEO.

Bradshaw was with Coles for the past nine years in several executive leadership positions including its chief store operations officer and group general manager for store development.

“Paul has significant frontline retailing expertise and is a great fit for Australia’s leading outdoor goods retailer BCF and its large, dedicated customer base,” Heraghty said.

“Paul describes himself as a customer-obsessed retailer, which is perfectly aligned with BCF’s customer-centric approach to retailing.”

Heraghty said with Bradshaw having worked with some of the world’s most successful brands in his 30-year career in the retail sector, he will bring hands-on leadership, extensive operational experience and a sharp focus on retail execution to their company.

BCF has 130 stores across Australia selling a broad range of quality boating, camping and fishing brands. 

Bradshaw will be based in Brisbane when he takes on the role.

Barney’s department store has been synonymous with luxury brands since it was founded nearly a century ago, but last week the US retailer announced it is in the midst of a potential bankruptcy filing.

The cost of renting retail space in prime locations (in this case New York City’s Madison Avenue) is a contributing factor to the American retail conglomerate’s downfall, which has struggled to keep up with changing consumer shopping trends in the luxury goods market. 

But although Barney’s is the most recent victim to the retail downturn, it’s not the first. Earlier this year, Sears, another well-known department store giant, announced the closure of over a third of its 700 US stores following a file for bankruptcy. 

So what does this mean for the broader luxury goods market, especially for the Australian market?

With the cost of rent rising exponentially, retailers are under pressure to prove the worth of their physical stores and make them work harder. Gone are the days of consumers relying solely on a bricks-and-mortar to enjoy a luxury shopping experience. Barney’s potential filing for bankruptcy underscores the need for department stores and the wider retail industry to truly justify their existence as intermediaries of brand experience.

Brand experiences at your fingertips

In times gone by, highly sought after luxury brands were only available through physical store visits, primarily via department stores. However, as more brands have gone directly after the customer, the role of physical stores in the buying journey has changed.  

In the wake of digital shopping, consumers can have the same experience at their fingertips, be it via a tablet, laptop or mobile. 

Luxury goods are now so much more accessible to consumers. The proliferation of technology means that luxe items not only are available at consumers’ fingertips, but also in every major Westfield and international airport, where they provide a consistent, almost regal experience that far outstrips the dimly lit, big box department stores of yesteryear.

While many high-end shoppers still demand the personal touch of a physical retail experience, foot traffic is undeniably dwindling. ShopperTrak data indicates foot traffic in Australian retail stores saw its worst December on record in 2019, followed by a 4 per cent fall in the first week of January, year on year.

Retailers need to be smarter about integrated shopping, by mixing offline and online channels and optimising the physical space bricks-and-mortar stores possess.

Known as an omnichannel retail experiences, brands keeping up with market changes have adopted a multi-faceted and seamless approach to marketing, selling and delivering goods to consumers all the way from social media campaigns to same-day delivery.

Physical stores not only act as customer experience centres, they can also act as hubs for customer service, click and collect or dispatch centres for online orders.

But that’s not to say luxe brands can only thrive in offline environments.

The rise of online luxury

The Undone is a prime example of a successful online luxury retailer in the Australian market. Born from the fashion blogger Harper and Harley, the site offers a minimal, curated selection of ‘elevated wardrobe staples’ representing Australia’s rising designer brands.

Rather than investing in rental space, The Undone focuses on curated selections of current-season trends through high-quality editorial content. They offer express shipping and same-day delivery in the Sydney metro-area, returns and a live chat to offer advice on sizing through to styling. 

Digital marketplaces have filled the void that ageing department stores are leaving in a new generation of retail experiences. Even if department stores follow fast on evolving their online presence, the lack of additional services offered – like on-demand delivery, personalised website journeys and valuable content – makes their competitive advantage unclear.

While Barney’s next move hangs in the balance, it’s clear that if bricks-and-mortar stores want to not only survive, but thrive, they need to create a strong presence in the digital retail space offering unique customer service experiences. 

The same could be said for the likes of David Jones and Myer who are at the mercy of the rise of omnichannel shopping. Unless there is significant digital transformation in this space, the role of large format,  luxury goods retailers will continue to come under threat. 

Bunnings boss Michael Schneider will lead his first delegation of executives to Israel this week, but rather than checking out hardware stores for new ideas they have a full itinerary of meetings with technology and venture capital funds, as cyber security looms as the next big opportunity for the hardware retailer.

Across a number of company visits, dinners and coffee catch-ups, Mr Schneider and his senior managers will meet Israeli technology companies engaged in cutting edge developments across security, online fraud detection, data analytics, robotics and artificial intelligence.

Fresh from a tour of Germany for its parent Wesfarmers, its chief executive Rob Scott and his board, where they kicked the tyres of local hardware chains and other retailers to gain fresh insight into the sector, Mr Schneider now wants to expand the group’s knowledge of technological innovations and specifically how retailers can benefit from cyber security.

“Over the last 25 years we have spent millions of dollars in sending people all around the world to study retail, for operational store development, property and supply chain, and as retailers we send people everywhere. We organise study trips every year all around the world and the prominent focus on that in the last 25 years has been to look at store formats,’’ Mr Schneider told The Australian.

“That helped us, but as we recognised a few years ago, we needed to undertake a digital transformation. And we wanted to learn from the world’s best, so we started with the most obvious places and we went to the US and met with the big companies like Google, Facebook, Adobe and Apple to see the sorts of tools and platforms that are there.”

Other recent tech-related trips by senior Bunnings executives included visits to Europe, particularly Dutch telecommunications and banking companies, but now Mr Schneider is keen for himself and his senior leadership team to investigate cyber security. The obvious next stop is Israel.

“Those trips to the US and Europe have been good and have informed our thinking. And this year the plan is to go to Israel and what we see in Israel is real innovation in technology. Personally it will also be my first time in Israel — and a number of our leadership team will go on this trip.

“The thing that really impresses us out of Israel is the technology space and definitely in that space you are seeing a lot of good work in cyber security, and privacy. It’s so important to us as we execute our digital strategy.

“We want to keep our customers’ information secure, so we are understanding where some of the world’s best thinking on cyber security is, as we are told a lot of it comes from Israel.

“What we are seeing is us shifting the way we educate our leadership team from purely looking at store formats to stores and technology.”

A full week packed with company visits will complement Bunnings’ rollout of its new “click & collect” offer, which is now operating in Tasmania and is being launched across Melbourne as the company prepares to roll out the offer nationwide.

Accompanying Mr Schneider to Israel at the end of the week will be key Bunnings executives including Keith Murray, the chain’s general manager of marketing, and Leah Balter, new director of digital and analytics.

Bunnings will meet with dozens of tech companies and investors, including global venture capital fund JVP, data and content analytics firm Glassbox, artificial intelligence company Twiggle, on-demand robotic supply chain business CommonSense Robotics, behavioural analytics firm Clicktale and fraud prevention group Riskified.

There will also be a cyber and tech industry dinner for Bunnings hosted in Tel Aviv with Australian ambassador to Israel, Chris Cannan.

Mr Schneider believes Bunnings’ increasing pivot to online platforms and other tech-based applications will increase the importance of data protection, cyber security and other risk mitigation capabilities for the hardware retailer.

Mr Schneider believes because Bunnings as a retailer is coming late to the digital party, it can actually benefit from being able to quickly and efficiently take up new tech ideas and platforms as it isn’t wedded to old systems.

“We are coming a little bit later to the digital age than some other businesses and we are fortunate in that we can adopt some of the most current tech platforms because we are unencumbered from proprietary platforms that we have to write off and jettison.’’

The Australian retail landscape is littered with brands that have attempted to expand overseas and failed.

Bunnings' expansion to the UK and Ireland cost Wesfarmers more than $1.7 billion in two years, OrotonGroup lost millions on a failed foray into Asia and the Middle East, Kathmandu was forced to close its stores in the UK and Country Road burned more than $30 million opening stores in the US in the 1990s.

One Australian retailer bucking the trend is Forever New, a Melbourne-based fast-fashion brand established 13 years ago by Dipendra Goenka with the backing of one of the UK's most successful apparel retailers, New Look founder Tom Singh.

After opening its first overseas store 10 years ago, Forever New now has more than 200 stores overseas and 86 in Australia.

Sales from brick and mortar stores in countries such as Canada, Singapore, China, India, South Africa and New Zealand, concessions in Bloomingdales,  Robinsons in Singapore and Debenham's in the Middle East, and revenues from dedicated online stores and marketplaces now account for 40 per cent of total sales of $300 million.

Mr Goenka is aiming to increase annual sales to $500 million in three to five years and believes overseas sales will soon overtake domestic sales as the group opens stores and concessions and expands its online reach.

"We are a truly global business," said Mr Goenka, 50.

"When I envisaged the brand in my head it was always a global brand – that’s why our first overseas store opened in 2009," he said.

"Forever New has a unique product offering, it's not only relevant to the southern hemisphere, it's relevant globally. With our distinctive feminine aesthetic and focus on quality at affordable price points we really offer a point of difference and value.

Portable brand

"So our global expansion has been a lot [easier] and [more] profitable  compared with anybody else who doesn’t have those elements. Our brand is very portable – you could take our brand anywhere else in the world and it will work."

It also helps that Mr Goenka has been manufacturing clothing for 30 years and supplies some of the world's largest brands including New Look, Zara-owner Inditex, Mango, Topshop,  PVH Corp (the owner of Tommy Hilfiger and Calvin Klein), Esprit and Guess.

Mr Goenka is the founder and chairman of Hangzhou-based textiles company Indochine International, which has more than a dozen factories in China, Bangladesh, Cambodia, Sri Lanka and Ethiopia.

Interestingly, his  factories do not supply Forever New.

Forever New is not a fully vertically integrated retailer but sources from several suppliers in China and south-east Asia, designing separate ranges for the southern and northern hemispheres to overcome reverse seasonality challenges and emulating global retailers such as Zara and H&M by dropping new stock into stores every week.

"We don't use any of my own factories, just to distinguish and have the two businesses quite separate." Mr Goenka said.

"My manufacturing business is more for volume retailers ... Forever New's quality requirements are a lot better so we use different suppliers around the globe.

Quality and fit

"But obviously my supply experience of 30 years helps. We are agile, we source at the right cost, we make sure quality and fit is of paramount importance.

"I have a very talented team (including 25 designers based in Melbourne)  and we really stick to our brand and our uniqueness. We stand for who we are and that’s why we look different."

According to ASIC records, Forever New sales rose 11 per cent in 2018 to $298 million, fuelled by stronger same-store sales in Australia and new stores overseas.

After a brand refresh late last year, when Forever New launched a new e-commerce platform, loyalty program and new store design, sales are growing between 5 per cent and 8 per cent despite the weak Australian retail sector.

The growth also comes despite Forever New being in competition with some of the biggest names in Australian retail such as Myer, David Jones and Premier Investment-owned brands Dotti and Portmans.

"We are doing nicely in Australia and wherever the growth comes along in Australia we are expanding," he said. "But Australia is going through a slow cycle and people are generally spending less on clothing."

Forever New is 50 per cent owned by Mr Goenka and 50 per cent  by Mr Singh through his private investment vehicle, Rianta Capital.

Last October the company converted $100 million of related party loans into equity, significantly strengthening the balance sheet.

"The balance sheet looks stronger to the banks and other people as we look at global expansion," Mr Goenka said.

Despite his 30 years in the apparel industry, connections with some of the world's biggest retailers and the global success of Forever New, Mr Goenka has managed to stay below the radar.

"That's how I like it," said the father of two. "We’re quietly doing our own business without making too much noise – that’s probably the best thing my grandfather [BK Goenka] taught me."

After graduating with a degree in computer engineering from University of Southern California,  Mr Goenka returned to India but was more interested in fashion than joining the family's sprawling industrial empire.

"In India and south-east Asia it's who you know and how you know and those things matter more than your own calibre and what you can do," he said. "I didn’t want to be any part of that.  I really wanted to stand on my own two feet."

Gap in market

He started a manufacturing business in Bombay with a $US20,000 bank loan and, after moving to Melbourne in 2000, spotted a gap in the market for an affordable feminine fashion brand.

Mr Goenka said the company had no plans for an initial public offering or sale.

"We're getting really good global growth so right now the intention of mine and Rianta's is to focus on growth. We haven't really discussed a change in our ownership structure," he said.

"But in three to five years, who knows. We'll look at options but right now the focus is really on growing the business. Being privately owned is an advantage – we can really focus on investing and growing the business for the long term."

Woolworths discount chain Big W is scaling back its presence in one of the most populous parts of Sydney by closing three stores in close proximity in  the city's south-west.

Woolworths said on Thursday the first of about 30 Big W stores to close over the next three years as part of a strategy aimed at cutting costs and restoring profitability are in Chullora, Auburn and Fairfield – all of which trade within a 12-kilometre radius.

Woolworths said it had reached agreements with landlords – Elanor (Fairfield and Auburn) and Jones Lang LaSalle (Chullora) – to close the three stores in January 2020 but did not disclose the cost of exiting the leases.

Citigroup analysts believe the biggest beneficiary of the store closures will be Wesfarmers' Kmart, which has been taking market share from Big W for several years, but Woolworths is hoping Chullora, Fairfield and Auburn customers will shop online or switch to neighbouring Big W stores in Bankstown, Merrylands, Wetherill Park and Winston Hills.

Woolworths bit the bullet on the ailing Big W business in April, announcing plans to close up to 30 of its 183 stores and two distribution centres, in Warwick, Queensland and Monarto, South Australia, with the loss of possibly more than 1000 jobs.

Store closures are based on trading performance rather than the length of leases and the 30 stores selected have the lowest sales per square metre and highest rent per square metre in the network.

Woolworths will book $270 million in one-off costs this year to exit leases before they expire, and cover redundancies and other store closure costs.

The retailer will also book about $100 million of non-cash asset impairments to reflect more "conservative" margins at Big W after taking into account current and future trading as customers shift to online shopping and costs such as home deliveries rise.

More sustainable network

The 2019 charges come after Woolworths booked $151 million in Big W impairments and restructuring costs in 2016, when five stores closed, and $35 million in impairments in 2017.

Big W managing director David Walker said on Thursday the closures were aimed at building a strong, profitable and more sustainable store and distribution centre network that reflected customers’ needs and the rapidly changing retail environment.

“These are not decisions we take lightly and we regret the impact the closures will have on affected team members,” Mr Walker said.

Big W has lost $275 million over the last three years after losing market share to Kmart, other discounters and online rivals.

After several unsuccessful turnaround plans, the chain appears to be finally turning the corner, posting its strongest quarterly sales growth in 10 years in the March quarter.

However, Woolworths expects Big W to lose another $80 million to $100 million this year, despite sales of more than $3.5 billion, taking losses to about $375 million in four years.

Two years after Topshop's Australian business fell into administration, the future of its last remaining store is in doubt as British parent Arcadia Group attempts to stave off collapse.

Sir Philip Green's Arcadia Group is closing all 11 Topshop stores in the US after filing for chapter 15 bankruptcy protection and is seeking approval from creditors and landlords to restructure the business in the UK.

Creditors will meet in the UK on Wednesday to consider a company voluntary arrangement (CVA), under which Arcadia Group will close 50 of its 560 UK and Ireland stores and cut costs in return for rent reductions of up to 70 per cent on 200 stores.

If the CVA is not approved, Arcadia has said it is “highly likely, either immediately or after a short time period, to enter into insolvent administration or liquidation".

Two years after Topshop's Australian business fell into administration, the future of its last remaining store is in doubt as British parent Arcadia Group attempts to stave off collapse.

Sir Philip Green's Arcadia Group is closing all 11 Topshop stores in the US after filing for chapter 15 bankruptcy protection and is seeking approval from creditors and landlords to restructure the business in the UK.

Creditors will meet in the UK on Wednesday to consider a company voluntary arrangement (CVA), under which Arcadia Group will close 50 of its 560 UK and Ireland stores and cut costs in return for rent reductions of up to 70 per cent on 200 stores.

If the CVA is not approved, Arcadia has said it is “highly likely, either immediately or after a short time period, to enter into insolvent administration or liquidation".

Topshop's last Australian store may close if creditors of its UK parent, Arcadia Group, refuse to approve a restructuring proposal. James Alcock

Sir Philip has also been ordered to inject another £50 million into Arcadia's pension fund to convince The Pensions Regulator to support the CVA proposal.

Sources say the future of the Australian business will be determined by the outcome of the creditors' meeting in the UK.

Topshop's store in Westfield Bondi Junction in Sydney closed a week ago and its last store in Melbourne, in the Emporium shopping centre, closed three weeks ago. The only store trading is in Market Street, Sydney, in the former Gowings building.

"If the CVA is not approved, it may have to close the Australian operations - I can't imagine they're making a lot of money in Australia," one source said.

Arcadia pulled the plug on Topshop's Australian operation, known as Austradia, in May 2017, refusing to cough up additional financial support amid mounting losses.

Austradia was wound up and five of Topshop's nine stand-alone stores and 17 concessions in Myer were closed, with the loss of more than 400 jobs.

Australian assets

Arcadia bought back the Australian assets in June 2017, paying $5.3 million for its remaining inventory. Secured creditors received between 33¢ and 39¢ in the dollar and unsecured creditors received nothing.

Myer, which owned 20 per cent of Austradia through preference shares, wrote off the rest of its $6 million stake in October 2017.

Sources said Arcadia ran the remaining three or four stores from the UK for six months before appointing a former Harrods, Myer and David Jones manager, Carl Baker, as general manager in 2018.

Mr Baker could not be reached for comment on Tuesday.

Arcadia, which also owns retailers Dorothy Perkins, Burton, Evans and Miss Selfridge, has blamed its problems on "unprecedented" conditions in the UK retail sector and competition from online retailers such as asos.com and boohoo.com.

As part of the restructuring plan, Topshop will start selling on asos.com for the first time. The Topshop brand sells on Australia's largest online fashion site, The Iconic.

UK retail sales fell by 2.7 per cent in May, the biggest drop since at least 1995, with Brexit-related uncertainty taking a toll on consumer spending.

Australian streetwear label Zanerobe has partnered with Target Australia to launch a diffusion line dubbed Z x Zanerobe. 

The parternship will see Zanerobe venture into womenswear for the first time while a sneaker launch is also in the pipeline. 

The affordable line will offer classic streetwear design and style to Target consumers at a price point of $20-$79. The range will include Zanerobe's iconic joggers and chinos as well as basics such as tees, jumpers and denim. 

Zanerobe co-founder Jonathon Yeo said the opportunity to design a diffusion line for Target was an opportunity the brand couldn't refuse. 

"The opportunity to design a collection for such a prominent Australian retailer whose vision for the future is quality and style driven really appealed to us.

"We’re proud to have created a collection that showcases our design ethos and is accessible to a broader Australian market," he said. 

Target Australia GM of merchandise Jamie Kristow said the business is thrilled to offer the on-trend brand to its customers. 

"We are really excited to introduce Z x Zanerobe into the Target family. 

"An ontrend streetwear label that offers incredible style and value for our Target customers." 

The Z x Zanerobe line is the latest addition to Target's fashion stable with the brand introducing a Bettina Liano line in February and updating its denim offering in March. 

The Z x Zanerobe line will launch in online and throughout select Target stores nationally from July 25. 

It follows the release of a Bettina Liano collection to stores this year. 

The Warehouse Group has appointed Simon West as the new CEO of its outdoor equipment brand Torpedo7.

West, the former chief executive of women’s clothing chain Max Fashions, will commence with his new role on August 2.

Simon has 20 years’ experience in retail and technology, operating in both a CEO and non-executive director capacity.

He has most recently held a non-executive director position at TradeMe and was an executive director at Max Fashions. He is also the former CEO of Ezibuy.

West will sit on The Warehouse Group’s senior executive team and will report to The Warehouse Group CEO Nick Grayston.

“Simon is well used to working in businesses undergoing growth which is part of the current focus for Torpedo7,” Grayston said.

“In the past year Torpedo7 has opened four new stores, taking its total to 18 plus one franchise in Wanaka.”

Grayston said The Warehouse is currently in the process of transforming the brand with key focus areas including bike, snow, water, camping and apparel.

reviously the Torpedo7 business was linked heavily to Noel Leeming, sharing a single CEO.

“Simon’s appointment will enable a dedicated focus on the brand at such an important stage.”The 1-day business will be added to Michelle Anderson’s chief digital officer portfolio of group e-commerce brands, which will enable 1-day to fully benefit from accelerated growth and the unified focus that the group e-commerce teams are delivering.