One of Australia’s biggest fashion retailers announced today that it will close more than 200 stores and shut down five of its brands as it struggles financially.
Mosaic Brands, an ASX-listed company, announced the axing of Rockmans, Autograph, Crossroads, W.Lane and BeMe brands, including all stores and websites.
The three major, long-standing brands Rockmans, Autograph and W.Lane have more than 200 stores across Australia.
The decision follows the move last year to close hundreds of stores and saw Mosaic Brands suspended from trading on the ASX after it missed a key deadline for reporting annual results.
While a tough economic climate, plummeting sales and financial woes are not unique to these brands (or the broader retail sector for that matter) it does mark the end of an era. Rockmans is an 80-year old brand that has weathered several economic cycles. So where things go so wrong for Mosaic Brands?
The short answer is brand cannibalisation.
Stroll through any any major shopping centre during the next few weeks before these stores shut down permanently and you’ll find Rockmans, along with Autograph, W.Lane and maybe even Crossroads. All in the same shopping centre, all competing for the same target audience – 40 plus women. The brands – and their clothing ranges – are hardly distinguishable. Aside from a lack lustre experience from staff that are clearly disengaged, there’s nothing unique about the store or clothes – no innovation, no stand-out designs.
They’ve played it safe and failed to differentiate from the broader fashion retail market, let alone from each other.
This is in contrast to Sussan, another women’s fashion brand that has traditionally played in the same affordable fashion space as the Mosaic brands.
Since the pandemic, Sussan has shaken its ‘middle australia, affordable fashion’ label and evolved into edgier designs, attracting the attention of a younger market and garnering an influencer following.
They have also overhauled their in-store experience, with a strong focus on customer engagement and loyalty.
It’s a brave move away from its brand heritage and it’s paying dividends.
In any market or industry, choosing and chasing a niche feels scary and potentially market-limiting.
But if you don’t stand for something, you risk standing for nothing, as the wind-up of 200 of Mosaic Brands outlets, including a brand founded in 1931, is a sad reminder of.
