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Credit: Hannah Morgan. Image shown is for illustration purpose only.

EziBuy latest victim of retail crisis

EziBuy, a popular Australian online retailer that specialises in fashion and homeware products, has fallen into administration due to a substantial drop in sales.

The company’s sales fell by 51 per cent during the first half of the 2022-2023 financial year, which is in sharp contrast to the continuous online growth of its parent company’s other brands. See the full financial report here.

Despite the pandemic-induced online shopping boom, EziBuy could not keep up with the competition and was forced to declare bankruptcy and undergo administration, becoming the latest casualty of Australia’s struggling retail landscape.

The retail industry in Australia has been facing a crisis for a while, with many brands struggling to stay afloat. The situation has resulted in a wave of bankruptcies and closures, which is worrying for both consumers and industry experts.

Traditional brick-and-mortar retailers have found it particularly challenging to compete with the rise of online shopping, high rent, increased competition, and changing consumer preferences.

The crisis has forced many well-known brands to shut down, leaving employees jobless and customers needing their favourite stores. Experts predict that more brands will continue to face financial difficulties in the coming months and years.

The Retail Apocalypse

Popular Brands that have Closed Down in Australia The retail industry in Australia has been hit hard in recent years, resulting in the closure of several popular brands. Harris Scarfe, a department store chain with a history of over 170 years, went into voluntary administration in late 2019 and was eventually bought by Spotlight Group. Women’s fashion brand Bardot also went into administration in 2019, followed by Jeanswest in early 2020, resulting in the closure of dozens of stores and leaving hundreds of employees without jobs. 

Colette by Colette Hayman, a handbag and accessories retailer, entered voluntary administration in early 2020, and while some stores were sold to new owners, many were closed down permanently.

Makeup brand Napoleon Perdis, founded by the famous Australian makeup artist of the same name, went into voluntary administration in January 2019 and closed all its stores in Australia. Meanwhile, men’s clothing retailer Roger David closed all its stores in late 2018 after going into administration.

In addition to local brands, some international retailers also suffered in the Australian market. Popular UK clothing brand Topshop closed down all its Australian stores in 2017, citing poor sales performance. Similarly, US clothing giant GAP closed all its stores in Australia in 2018 after struggling to compete with other retailers.

Iconic music retailer Sanity shuts down 50 stores in Australia 

Recently, Sanity, a renowned music and entertainment retailer that had been a staple of the Australian retail industry for over three decades, closed all 50 of its stores across the country. The retailer needed help to keep up with changing trends in the industry, particularly the shift towards digital music and streaming services.

The last two Sanity music stores, located in the Victoria state suburbs of Fountain Gate and Waurn Ponds, shut their doors permanently on Sunday, bringing an end to an era for music lovers and entertainment enthusiasts across Australia.

Reasons behind retail store closures

Declining foot traffic, increased competition, and changing consumer preferences are reasons several retail stores in Australia have had to shut down.

As people’s shopping habits have shifted towards online shopping, physical stores have seen a drop in the number of customers. The rise of e-commerce has also posed a significant challenge to brick-and-mortar retailers, who have struggled to compete with the convenience and variety of online shopping. 

This has led to a decrease in sales, making it difficult for retailers to remain profitable. Other factors, such as high rent, have also contributed to the closure of several stores, creating a challenging environment for retailers in Australia.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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