Inside the sad downfall of Country Road: Store closures, falling sales and ‘astronomical’ prices – so can the Aussie fashion icon survive?
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Country Road, once one of Australia's most iconic fashion brands, has posted its third consecutive annual loss, deepening concerns about its long-term survival amid store closures and weakening sales. A fashion expert has attributed the decline to the retailer being squeezed out of the middle market, as budget-conscious shoppers increasingly choose either ultra-cheap fast-fashion chains or higher-end brands offering lasting quality, leaving Country Road's prices hard to justify by comparison.
Country Road Group, which also owns Witchery, Mimco, Trenery and Politix, reported a net loss of AUD $21.7 million for 2025-2026, a significant improvement on the AUD $124 million loss the previous year. Group sales rose just one per cent overall, though momentum faded in the second half when sales fell 0.5 per cent. Founded in 1974 by Stephen Bennett and later taken over by South Africa's Woolworths Holdings, the brand has shifted from Australian-made staples to what commentators call "astronomical" pricing that struggles to compete with rivals such as Shein and Kmart. There was a bright spot, however, as the Australian division returned to full-year profitability for the first time since 2023.
- Country Road posts third straight annual loss, AUD $21.7 million for 2025-26.
- Expert blames pricing squeezed between fast fashion and premium brands.
- Australian division returns to profit for first time since 2023.
Full account
Country Road, the retailer once regarded as a cornerstone of Australian fashion, has posted its third straight annual loss, underlining just how far the label has fallen from its heyday. Country Road Group, which also trades as Witchery, Mimco, Trenery and Politix, reported a net loss of $21.7 million for the 2025-26 financial year. Although substantial, the figure marks a sharp improvement on the $124 million loss recorded twelve months earlier, suggesting the group's turnaround efforts are having some effect even as the underlying business remains under strain.
The results reveal a business still finding its footing. Overall group sales rose by one per cent across the year, with comparable-store sales up 1.6 per cent, but that momentum faded in the second half, when sales actually fell by 0.5 per cent. It is a far cry from the brand's standing decades ago: founded by Stephen Bennett in 1974 with an ambition to produce quality clothing suited to Australian life, Country Road grew through the 1980s and 1990s into a byword for understated, well-made style, its cotton and chambray shirts becoming staples of Australian wardrobes and its ambitions extending to an early push into the American market.
Much of that reputation, observers say, was built on locally made goods, but the character of the business shifted once South Africa's Woolworths Holdings acquired a controlling stake in the late 1990s and production shifted offshore. Fashion commentator Annalise Wood has argued that Country Road is now squeezed in an uncomfortable middle tier of the market, caught between shoppers chasing bargains and those willing to pay a premium for garments they expect to last. In her view, ultra-cheap fast-fashion operators such as Shein have eroded Country Road's position by offering comparable looks at a fraction of the price, drawing away a customer base that overlaps more with the retailer's traditional, older shoppers than might be assumed.
There are, however, tentative signs of stabilisation. The Australian arm of the business swung back into full-year profit for the first time since 2023, posting earnings before interest and tax of $2.3 million — an improvement of 113 per cent on the prior year. Even so, with store closures continuing and pricing under scrutiny from cost-conscious consumers, the broader question of whether Country Road can fully restore its standing as one of Australia's defining fashion houses remains unresolved.
Where outlets differ
The two source reports supplied are effectively identical in wording and content, both cut off at the same point before further detail on the Australian division's results, so no substantive differences in emphasis or fact could be identified between them.
Neither source elaborates on the 'astronomical prices' angle referenced in the headline beyond Annalise Wood's general comments on pricing pressure, leaving that specific characterisation unexplained by the available text.
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