Country Road, the iconic Australian fashion retailer, is set to close its flagship store in Sydney due to declining sales, prompting its South African owners to reevaluate their retail strategy. The closure of the store in Sydney’s Queen Victoria Building marks a significant shift in the company’s approach as it looks to invest in other locations. This move comes on the heels of the temporary closure of its Trenery store in Mosman for renovations and the impending review of its Pitt Street Mall store lease in 2028.
Despite these changes, Country Road remains committed to its presence in Australia, with plans to open new and refurbished stores to cater to evolving customer needs. The company stated that it aims to enhance customer experiences by expanding its retail footprint, with multiple new stores scheduled to open in different locations across the country by the end of the year.
Woolworths, the South African parent company of Country Road, had previously reported a decline in sales from the Australian brand. The challenging retail environment saw a significant drop in sales figures, leading to a reevaluation of the company’s operations. Country Road’s sales slumped by 6.2% in the first half of the 2024-25 financial year, with operating profits taking a substantial hit.
Founded in 1974, Country Road started as a men’s, women’s, and children’s clothing store before expanding into homewares and accessories. Over the years, it evolved into a renowned lifestyle brand known for its high-quality apparel and homewares. In 2014, the brand was acquired by Woolworths, marking a new chapter in its history.
The struggles faced by Country Road are reflective of broader challenges in the retail sector, with several other major players experiencing financial difficulties. Mosaic Brands, the parent company of popular brands like Millers and Katies, entered voluntary administration in 2024, highlighting the tough market conditions prevailing in the industry.
Similarly, iconic retailer Jeanswest cited a combination of factors for its store closures, resulting in job losses for hundreds of workers. The ripple effects of these closures have been felt across the retail landscape, underscoring the fragility of the sector in the face of economic pressures and changing consumer behaviors.
Amidst these challenges, recent data from CreditorWatch suggests a slight easing in business stress indicators, hinting at some relief for Australian enterprises. The impact of tax cuts, interest rate reductions, and fiscal support measures is gradually mitigating the pressures faced by businesses, although certain sectors continue to grapple with significant challenges.
As the retail industry navigates through a period of transition and uncertainty, the fate of iconic brands like Country Road serves as a barometer of the sector’s resilience and adaptability. The closure of its flagship store in Sydney signals a strategic shift in response to evolving market dynamics, underscoring the need for agility and innovation to thrive in a rapidly changing retail landscape.
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