21 KMD stores are closing, but they promise a revamp that could change Aussie retail forever
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Iconic Aussie retailer KMD Brands has sent shockwaves through the retail sector with its latest announcement.
Fans of Kathmandu and Rip Curl may find their favourite stores disappearing from high streets across the country.
The group said the closures were part of a bold plan to revive its struggling business.
KMD Brands revealed it would shut 21 stores across its network as it sought to lift profits and recover its falling share price.
The company announced an “organisational restructure” aimed at delivering sustainable, profitable growth after a tough financial year in which sales fell by 0.5 per cent across its brands until May 2025.
Brent Scrimshaw, group chief executive and managing director, said the business would roll out its Next Level transformation strategy to unlock brand value.
‘Since joining KMD Brands as Group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners while immersing myself in the business,’ he said in a statement to the ASX.
‘That’s why we’re launching Next Level – a transformation strategy designed to align the group behind a brand and product led customer-centric growth agenda.’
Scrimshaw added: ‘Core to our strategy is a clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography.’
KMD shares had fallen more than 50 per cent over the past 12 months and were trading at 22 cents at the time of the announcement. The retailer said it would not only close unprofitable stores but also redesign store layouts and improve the digital experience for customers.
The group planned to refresh the look of Rip Curl, Kathmandu and Oboz stores, with Kathmandu launching concept ‘stores of the future’ across Australia and New Zealand before Christmas.
KMD Brands also intended to strengthen its digital and data intelligence capabilities, aiming to make better data-led decisions and enhance supply chains. Chairman David Kirk described the company as ‘materially undervalued’ by the market.
‘Over the last 18 months we have deliberately made significant executive team changes to enhance the core capabilities of the group,’ Kirk said.
‘The board is fully aligned behind the Next Level strategy and is confident in the group’s ability to self-fund key initiatives and deliver increasing value for shareholders.’
The retail landscape is shifting rapidly, and KMD Brands’ store closures are far from an isolated case.
Other well-known retailers have faced similar challenges, navigating closures and strategic overhauls to stay afloat.
For a closer look at another high-profile example, check out this story.
Read more: Another trusted name is closing its doors for good—what’s really behind this retail unraveling?
Will the Next Level strategy be enough to restore KMD Brands to its former glory?
Fans of Kathmandu and Rip Curl may find their favourite stores disappearing from high streets across the country.
The group said the closures were part of a bold plan to revive its struggling business.
KMD Brands revealed it would shut 21 stores across its network as it sought to lift profits and recover its falling share price.
The company announced an “organisational restructure” aimed at delivering sustainable, profitable growth after a tough financial year in which sales fell by 0.5 per cent across its brands until May 2025.
Brent Scrimshaw, group chief executive and managing director, said the business would roll out its Next Level transformation strategy to unlock brand value.
KMD Brands to close 21 stores nationwide. Image source: Strategy
‘Since joining KMD Brands as Group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners while immersing myself in the business,’ he said in a statement to the ASX.
‘That’s why we’re launching Next Level – a transformation strategy designed to align the group behind a brand and product led customer-centric growth agenda.’
Scrimshaw added: ‘Core to our strategy is a clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography.’
KMD shares had fallen more than 50 per cent over the past 12 months and were trading at 22 cents at the time of the announcement. The retailer said it would not only close unprofitable stores but also redesign store layouts and improve the digital experience for customers.
The group planned to refresh the look of Rip Curl, Kathmandu and Oboz stores, with Kathmandu launching concept ‘stores of the future’ across Australia and New Zealand before Christmas.
KMD Brands also intended to strengthen its digital and data intelligence capabilities, aiming to make better data-led decisions and enhance supply chains. Chairman David Kirk described the company as ‘materially undervalued’ by the market.
‘Over the last 18 months we have deliberately made significant executive team changes to enhance the core capabilities of the group,’ Kirk said.
‘The board is fully aligned behind the Next Level strategy and is confident in the group’s ability to self-fund key initiatives and deliver increasing value for shareholders.’
The retail landscape is shifting rapidly, and KMD Brands’ store closures are far from an isolated case.
Other well-known retailers have faced similar challenges, navigating closures and strategic overhauls to stay afloat.
For a closer look at another high-profile example, check out this story.
Read more: Another trusted name is closing its doors for good—what’s really behind this retail unraveling?
Will the Next Level strategy be enough to restore KMD Brands to its former glory?
