It's been a tough year to be browsing the local shopping centre. Where Rivers once displayed their sensible winter coats, you'll find empty shopfronts.
The familiar Ally Fashion that dressed teenagers for two decades has vanished almost overnight. Even Country Road, that stalwart of Australian style, is quietly closing doors.
Behind this retail upheaval sits a sobering reality: Shein and Temu together are expected to record sales of more than $2 billion in Australia this financial year, while established Australian brands struggle to keep the lights on.
Temu’s growth alone has been extraordinary—Similarweb’s 2025 Digital 100 Australia report listed it as the fastest-growing digital brand in the country, surpassing even ChatGPT. The platform saw a 72 per cent increase in unique website visits in 2024 and was the most downloaded iPhone app in the same year.
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The numbers tell a stark story
The pace of retail collapse has accelerated dramatically in 2025. Insolvencies were up 57 percent for the year to November 2024, with businesses closing at the highest rate since August 2020. That's not just statistics—it represents thousands of Australian jobs and decades of retail heritage disappearing.
In 2024, retail giant Mosaic Brands—owner of Millers, Rivers, Crossroads, Katies, Noni B and Autograph—collapsed owing $318 million, with more than 4000 staff affected nationwide.
Ally Fashion's closure affects up to 185 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory. More than 1,000 employees now face job losses. Longstanding Australian clothing and footwear brand Rivers is set to close all 136 of its stores, making more than 600 staff redundant.
Just last month, outdoor retailers Rip Curl and Kathmandu announced the closure of 14 stores after parent company KMD reported a $105 million annual loss.
The casualties keep mounting. The demise of Australia's largest fashion retailer group, which also included Rockmans, Crossroads, W. Lane and Katies, among others, will see some 700 retail shops close and destroy almost 3,000 jobs throughout the country.
'It's blatant thievery of intellectual property and in breach of copyright.'
The Temu and Shein phenomenon
These Chinese-owned platforms haven't just appeared—they've exploded across the Australian market. Temu burst onto the scene in 2023 and quickly became the fastest growing digital brand in the country, even outpacing ChatGPT. The appeal is obvious: why pay $90 for an authentic Aje T-shirt when Temu offers what appears to be the same design for $11?
Temu’s expansion has been fuelled by aggressive marketing and a flood of low-cost listings—hundreds of knock-offs that imitate major brands’ logos and styles at a fraction of the price.
But that $79 saving comes with hidden costs that many shoppers don't consider. These platforms operate under US law through Delaware-based subsidiaries, meaning Australian copyright protections offer little recourse when local designs are copied and sold at rock-bottom prices.
Temu is owned by Whaleco Inc., a Delaware-based subsidiary of Chinese e-commerce company PDD Holdings. Because of that structure, Australian intellectual property laws have no direct effect on the company’s operations.
A Temu spokesperson told The Australian, 'Temu operates as an online marketplace where independent third-party sellers list their own products. Sellers who violate these rules may face removal of their listings, account suspensions, or permanent bans in cases of repeated or serious infringements.'
The property puzzle: not what you'd expect
Here's where the story takes an interesting turn. You might assume that with all these store closures, commercial property would be in free fall. But the reality is more complex than that.
Vacancy rates in major shopping centres have begun to climb, with landlords scrambling to re-lease empty shops as fashion and homeware chains scale back their expansion plans.
Australia's retail sector continues to show resilience, despite persistent cost-of-living pressures, with a new CBRE survey showing the national CBD retail vacancy rate has tightened to 11.1 per cent (weighted) in H1 2025. This is the lowest level since the count began in 2021.
Even more surprising, retail property is positioning itself as the standout performer for 2025, marking a significant shift from recent years where industrial assets dominated commercial property markets. This rebound in retail property is particularly evident in transaction volumes, with retail now representing 41.1 per cent of all commercial transaction numbers in late 2024; a remarkable increase from its long-term average of 28 per cent.
Real estate analysts warn, however, that continued brand collapses could reshape Australia’s retail property market—the same one that underpins the value of many super funds and suburban economies.
What's driving retail property investment?
While individual brands struggle, savvy property investors are betting on retail spaces that offer experiences beyond shopping—think dining, entertainment, and services that can't be replicated online. Shopping centres are transforming into community hubs rather than pure retail destinations.
What this means for your super fund
If you're wondering why this matters to your retirement savings, consider this: many superannuation funds have significant exposure to commercial property through their investment portfolios. The commercial property market is valued at $52.33 billion in 2025, with major institutional investors heavily involved.
While some retail brands struggle, the property market's resilience suggests your super fund's commercial property investments might be better insulated than expected. However, the ongoing shifts mean fund managers are increasingly focusing on properties that can adapt to changing retail patterns.
Protecting yourself as a consumer
- Check product authenticity before purchasing from unfamiliar online platforms
- Remember that extremely low prices often signal counterfeit goods
- Support local retailers when possible to help maintain Australian jobs
- Be wary of products that seem too good to be true
- Research return policies and consumer protections before buying
The copying crisis
For Australian designers and brands, the intellectual property theft is devastating. When UK fashion designer Hanri van Wyk found her designs on Temu at a fraction of her legitimate prices, her frustration was palpable. The problem extends beyond individual designers to established Australian brands seeing their intellectual property copied with little legal recourse.
As van Wyk warned, 'If you’re tempted by ultra-low-cost websites such as Temu, you need to be aware of the ethics of these types of mega e-commerce companies.'
The challenge is enormous. Thousands of items are listed daily on these platforms, making it virtually impossible for legitimate brands to police every infringement. Even when items are removed, they often reappear under different seller names.
The ripple effects
The impact extends well beyond retail workers and property owners. The last time Kim applied for a retail job, she received a rejection email informing her she'd been competing with 900 other applicants. For many older Australians looking to supplement their retirement income through part-time retail work, the job market has become increasingly competitive as positions disappear.
There were significant decreases in clothing, footwear and personal accessory retailing, which dropped 2.5 per cent, and department stores also saw a 2.5 per cent reduction in turnover in April 2025 alone, showing the trend isn't slowing down.
Finding the silver lining
Despite the challenges, some opportunities are emerging. The supermarket and grocery sector is faring well, as well as discount department stores like Kmart, Target and Big W, according to Mortimer. 'When times are tough, people shift away from more expensive options to cheap and cheerful,' he said.
For consumers, this retail shake-up might ultimately lead to more innovative shopping experiences. Properties are adapting by offering entertainment, dining, and services that online platforms can't replicate.
Looking ahead
The retail landscape is clearly in transition, and the changes will likely accelerate rather than reverse. The key for Australian consumers is to shop consciously, understanding that every purchase decision has broader implications for local jobs and the economy.
While we can't turn back the clock on globalisation and online shopping, we can make informed choices about where and how we spend our money. Sometimes that bargain price tag carries costs we can't see until it's too late.
What are your thoughts on this retail transformation? Have you noticed changes in your local shopping centres, or do you have concerns about the quality and authenticity of online purchases? Share your experiences in the comments below.
Primary Source
https://www.realcommercial.com.au/n...=newscomau&campaignPlacement=realestatemodule
Closure of Australian retail chain Rivers points to a deepening economic crisis—World Socialist Web Site
Cited text: This is expressed particularly in the rise of Chinese-owned online retailers Shein and Temu, which together are expected to record sales of more than ...
Excerpt: Shein and Temu together are expected to record sales of more than $2 billion in Australia this financial year
https://www.wsws.org/en/articles/2025/02/27/edbu-f27.html
Closure of Australian retail chain Rivers points to a deepening economic crisis—World Socialist Web Site
Cited text: Insolvencies were up 57 percent for the year to November 2024, with businesses closing at the highest rate since August 2020.
Excerpt: Insolvencies were up 57 percent for the year to November 2024, with businesses closing at the highest rate since August 2020
https://www.wsws.org/en/articles/2025/02/27/edbu-f27.html
Ally Fashion Closure Leaves 1,000+ Jobless Across Australia—Colitco
Cited text: The closure affects up to 185 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory. More than 1,000 employ...
Excerpt: Ally Fashion's closure affects up to 185 stores across New South Wales, Victoria, Queensland, South Australia, and the Northern Territory.
https://colitco.com/ally-fashion-collapse-australia-185-stores-1000-jobs/
Closure of Australian retail chain Rivers points to a deepening economic crisis—World Socialist Web Site
Cited text: Longstanding Australian clothing and footwear brand Rivers is set to close all 136 of its stores, making more than 600 staff redundant.
Excerpt: Longstanding Australian clothing and footwear brand Rivers is set to close all 136 of its stores, making more than 600 staff redundant
https://www.wsws.org/en/articles/2025/02/27/edbu-f27.html
Closure of Australian retail chain Rivers points to a deepening economic crisis—World Socialist Web Site
Cited text: The demise of Australia’s largest fashion retailer group, which also included Rockmans, Crossroads, W. Lane and Katies, among others, will see some 70...
Excerpt: The demise of Australia's largest fashion retailer group, which also included Rockmans, Crossroads, W.
https://www.wsws.org/en/articles/2025/02/27/edbu-f27.html
Australia’s CBD retail vacancy rate tightens to 11.1 per cent | CBRE Australia
Cited text: Australia’s retail sector continues to show resilience, despite persistent cost-of-living pressures, with a new CBRE survey showing the national CBD r...
Excerpt: Australia's retail sector continues to show resilience, despite persistent cost-of-living pressures, with a new CBRE survey showing the national CBD retail vacancy rate has tightened to 11.1 per cent (weighted) in H1 2025.
https://www.cbre.com.au/press-releases/australia-s-cbd-vacancy-rate-tightens-h1-2025
Commercial property outlook report 2025 • Ray White Commercial
Cited text: Prediction 1: Retail set to lead commercial property · Retail property is positioning itself as the standout performer for 2025, marking a significant...
Excerpt: retail property is positioning itself as the standout performer for 2025, marking a significant shift from recent years where industrial assets dominated commercial property markets.
https://www.raywhitecommercial.com/research/commercial-property-outlook-report-2025
Commercial property outlook report 2025 • Ray White Commercial
Cited text: This rebound in retail property is particularly evident in transaction volumes, with retail now representing 41.1 per cent of all commercial transacti...
Excerpt: retail property is positioning itself as the standout performer for 2025, marking a significant shift from recent years where industrial assets dominated commercial property markets.
https://www.raywhitecommercial.com/research/commercial-property-outlook-report-2025
It's been a bad year for retail. Is the Aussie mall dead?
Cited text: The last time Kim applied for a retail job, she received a rejection email informing her she'd been competing with 900 other applicants.
Excerpt: The last time Kim applied for a retail job, she received a rejection email informing her she'd been competing with 900 other applicants
https://www.sbs.com.au/news/the-fee...-for-retail-is-the-aussie-mall-dead/lw2r9p3xr
Australian retail faces dip in April 2025 as clothing sales decline
Cited text: There were significant decreases in clothing, footwear and personal accessory retailing, which dropped 2.5 per cent, and department stores also saw a 2.5 per cent red...
Excerpt: There were significant decreases in clothing, footwear and personal accessory retailing, which dropped 2.5 per cent, and department stores also saw a 2.5 per cent reduction in turnover
https://www.retail-insight-network.com/news/australia-retail-dip-april-2025/
It's been a bad year for retail. Is the Aussie mall dead?
Cited text: The supermarket and grocery sector is faring well, as well as discount department stores like Kmart, Target and Big W, according to Mortimer. 'When ti...
Excerpt: The supermarket and grocery sector is faring well, as well as discount department stores like Kmart, Target and Big W, according to Mortimer.
https://www.sbs.com.au/news/the-fee...-for-retail-is-the-aussie-mall-dead/lw2r9p3xr
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Mind you the truck was black and white. 
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