Remember when a trip to Smiggle was the highlight of back-to-school shopping? When those bright, colourful stores filled with glittery pencil cases and quirky erasers were every child's paradise—and every parent's budget nightmare? Those days might be numbered.
The Australian stationery brand that once dominated school corridors is now fighting for survival, closing stores globally while cheap overseas competitors flood the market with alternatives that cost a fraction of the price.
Smiggle's global sales dropped 10.7 per cent from $296 million last year to $264.2 million this year, a reflection of the cost-of-living pressures felt globally.
The rise of the bargain hunters
Behind Smiggle's struggles lies a remarkable story of changing Australian shopping habits that's particularly relevant for families feeling the pinch of rising costs.
According to Roy Morgan, 3.8 million Australians purchased from Temu in the last 12 months, while 2 million shopped through Shein.
It estimated Shein and Temu had close to a combined $3 billion in annual sales in the year to last June.
To put that in perspective, that's roughly one in every seven Australians now shopping on these ultra-cheap Chinese platforms.
The number of people shopping each month on Temu has grown by 32 per cent, from 1.26 million in the Oct-Dec 2023 quarter to 1.66 million in the April-June 2024 quarter.
'Cost of living pressures have fueled both Shein and Temu's stunning rise as Australians look to get more for their dollars'
For many grandparents helping with school supplies or looking for birthday gifts, the mathematics is simple: why spend $25 on a Smiggle pencil case when you can get something similar for $3 on Temu?
When the sparkle starts to fade
Smiggle was established as a children's stationery brand in 2003 in Melbourne, originally opening 20 concept stores.
Over the past twenty years, Smiggle has grown to become an iconic school, lifestyle and stationery brand with products available in over 20 countries.
At its peak, Smiggle represented more than just stationery—it was a lifestyle choice that parents and grandparents embraced to give children that extra bit of school-yard status. The brand's success was built on transforming mundane school supplies into desirable, Instagram-worthy accessories.
But the challenges have been mounting steadily. The latest fall in earnings by Smiggle may also have swayed that decision.
Smiggle, a solid performer most years, also struggled due to a pullback in discretionary spending by consumers. Smiggle posted global sales of $296 million in FY24, down 7.4 per cent on its record FY23 sales performance.
The brand's parent company, Premier Investments, had planned to spin off Smiggle as a standalone business, but due to the current prioritisation of the proposal received from Myer, the board is no longer working towards the demerger of Smiggle by the end of January 2025.
The great Australian retail shake-up
Smiggle isn't alone in facing these headwinds. The Australian retail landscape is experiencing what can only be described as a fundamental transformation, with traditional brick-and-mortar stores struggling against the tide of online bargain hunting.
The home of brands—Australian department stores—are also under threat as their shoppers redirect part of their spending to Temu and Shein to get more for their money in a tight economic environment.
This shift is particularly evident in categories that matter to families. The most popular items to buy are adult clothes from Shein (57 per cent), household items from Temu (35 per cent), and electronics from AliExpress (20 per cent).
What families are buying online instead
- Household essentials and cleaning products
- Children's clothing and accessories
- School and office supplies
- Small electronics and gadgets
- Toys and gifts
The price of bargain hunting
While the savings are undeniable, there's a growing awareness among Australian shoppers that ultra-cheap doesn't always mean good value. Recent research reveals some concerning trends about quality and reliability.
Fresh research from e-commerce and marketplace group Pattern Australian revealed only 12 per cent of consumers trust Temu for its product quality, leading to a forecast 7 per cent drop in shoppers. Similarly, Shein faces similar struggles, with just 11 per cent consumer trust.
Only 43 per cent of shoppers say they would consider buying from Temu in 2025— a figure that may decline further unless improvements in quality and delivery are made.
This presents a dilemma familiar to many grandparents: is the money saved worth the potential disappointment when the glittery pencil case falls apart after a week, or the dress doesn't fit despite the size chart?
What this means for Australian families
The implications extend far beyond just where we buy our stationery. Smiggle operates over 300 standalone stores across Australia, New Zealand, Singapore, Malaysia, United Kingdom and the Republic of Ireland.
Store closures mean job losses in local communities and fewer options for last-minute gift shopping or returns.
For families, particularly those with limited internet access or concerns about online security, the shift to online-only retailers creates new challenges.
Traditional retail offered the security of being able to touch, feel, and immediately return products—luxuries that become apparent only when they're no longer available.
Safe online shopping tips for seniors
Start with small purchases to test delivery and quality
Keep records of all transactions and screenshots
Check return policies before buying
Use secure payment methods like PayPal
Be wary of deals that seem too good to be true
Read reviews from verified purchasers
Looking ahead: adapting to the new retail reality
The retail revolution isn't going away, but there are signs that the initial honeymoon period with ultra-cheap platforms may be cooling.
The current numbers indicate that a lot of people are trialing the platform, so we'll see if that holds over 2024 as customers assess the quality of products that arrive at their door.
Meanwhile, Amazon has further strengthened its position as the premier marketplace in Australia.
The platform gained 1.1 million new Australian users in 2024, amassing a total user base of 7.9 million, which accounts for 10 per cent of Australia's total online shopping spend.
For Smiggle and similar brands, the challenge is finding a middle ground—maintaining quality and brand appeal while competing on price in an increasingly cost-conscious market.
Did you know?
Did you know?
Australian families are increasingly starting their product searches on Amazon rather than Google, with a 27 per cent rise in consumers beginning their shopping research on the platform, while Google's usage for product discovery has dropped 7 per cent.
What This Means For You
The transformation of Australian retail affects us all, whether we're grandparents trying to spoil the grandchildren without breaking the bank, or simply families looking to make every dollar stretch further. The key is being informed consumers—understanding both the opportunities and risks that come with this brave new world of online bargain hunting.
What's your experience been with these new online platforms? Have you found genuine bargains, or learned any lessons about the true cost of cheap shopping? Share your stories in the comments below.
Primary Source
https://www.realcommercial.com.au/n...=newscomau&campaignPlacement=realestatemodule
Premier Investments profits fall, driven by Smiggle sales drop—Inside Retail Australia
Cited text: Smiggle’s global sales dropped 10.7 per cent from $296 million last year to $264.2 million this year, a reflection of the cost-of-living pressures fel...
Excerpt: Smiggle's global sales dropped 10.7 per cent from $296 million last year to $264.2 million this year, a reflection of the cost-of-living pressures felt globally.
https://insideretail.com.au/busines...fits-fall-driven-by-smiggle-sales-drop-202509
Chinese retailers Shein, Temu set to lose customers in 2025 as Australians lose trust | The Nightly
Cited text: According to Roy Morgan, 3.8 million Australians purchased from Temu in the 12 months to August 2024, while 2 million shopped through Shein.
Excerpt: According to Roy Morgan, 3.8 million Australians purchased from Temu in the 12 months to August 2024, while 2 million shopped through Shein.
https://thenightly.com.au/business/...-in-2025-as-australians-lose-trust-c-17630499
Chinese retailers Shein, Temu set to lose customers in 2025 as Australians lose trust | The Nightly
Cited text: It estimated Shein and Temu had close to a combined $3 billion in annual sales in the year to last June.
Excerpt: It estimated Shein and Temu had close to a combined $3 billion in annual sales in the year to last June.
https://thenightly.com.au/business/...-in-2025-as-australians-lose-trust-c-17630499
Temu & Shein’s Australian customer base keeps growing—as more Australians continue to trade down in the first half of 2024 in response to the cost-of-living crisis—Roy Morgan Research
Cited text: Over this short time the number of shoppers has continued to grow at a staggering rate: the number of people shopping each month on Temu has grown by ...
Excerpt: The number of people shopping each month on Temu has grown by 32 per cent, from 1.26 million in the Oct-Dec 2023 quarter to 1.66 million in the April-June 2024 quarter.
https://www.roymorgan.com/findings/9646-shein-and-temu-contintue-to-grow-strongly-august-2024
Our Company—Premier Investments
Cited text: Smiggle was established as a children’s stationery brand in 2003 in Melbourne, originally opening 20 concept stores. Over the past twenty years, Smigg...
Excerpt: Smiggle was established as a children's stationery brand in 2003 in Melbourne, originally opening 20 concept stores.
https://www.premierinvestments.com.au/about-us/
Peter Alexander, Smiggle demerger on hold for now by Premier
Cited text: The latest fall in earnings by Smiggle may also have swayed that decision.
Excerpt: The latest fall in earnings by Smiggle may also have swayed that decision. Smiggle, a solid performer most years, also struggled due to a pullback in discretionary spending by consumers.
https://www.businessnewsaustralia.c...demerger-on-hold-to-focus-on-myer-merger.html
Peter Alexander, Smiggle demerger on hold for now by Premier
Cited text: Smiggle, a solid performer most years, also struggled due to a pullback in discretionary spending by consumers. Smiggle posted global sales of $296 mi...
Excerpt: The latest fall in earnings by Smiggle may also have swayed that decision. Smiggle, a solid performer most years, also struggled due to a pullback in discretionary spending by consumers.
https://www.businessnewsaustralia.c...demerger-on-hold-to-focus-on-myer-merger.html
Peter Alexander, Smiggle demerger on hold for now by Premier
Cited text: “The board continues to see merit in the potential demerger of Peter Alexander and Smiggle, however, due to the current prioritisation of the proposal...
Excerpt: due to the current prioritisation of the proposal received from Myer, the board is no longer working towards the demerger of Smiggle by the end of January 2025.
https://www.businessnewsaustralia.c...demerger-on-hold-to-focus-on-myer-merger.html
Australian brands face increasing pressure from ultra-cheap Temu and Shein. More than 2 million Australians shop on these platforms each month—Roy Morgan Research
Cited text: The home of brands—Australian department stores—are also under threat as their shoppers redirect part of their spending to Temu and Shein to get m...
Excerpt: The home of brands—Australian department stores—are also under threat as their shoppers redirect part of their spending to Temu and Shein to get more for their money in a tight economic environment.
https://www.roymorgan.com/findings/9471-growth-of-temu-shein-in-australia-february-2024
7 in 10 Aussies use Chinese marketplaces, Temu tops the list | Mi3
Cited text: The most popular items to buy are adult clothes from Shein (57 per cent), household items from Temu (35 per cent), and electronics from AliExpress (20 per cent).
Excerpt: The most popular items to buy are adult clothes from Shein (57 per cent), household items from Temu (35 per cent), and electronics from AliExpress (20 per cent).
https://www.mi-3.com.au/03-07-2024/7-10-aussies-use-chinese-marketplaces-temu-tops-list
Chinese retailers Shein, Temu set to lose customers in 2025 as Australians lose trust | The Nightly
Cited text: But fresh research from e-commerce and marketplace group Pattern Australian revealed only 12 per cent of consumers trust Temu for its product quality,...
Excerpt: Fresh research from e-commerce and marketplace group Pattern Australian revealed only 12 per cent of consumers trust Temu for its product quality, leading to a forecast 7 per cent drop in shoppers.
https://thenightly.com.au/business/...-in-2025-as-australians-lose-trust-c-17630499
Australian Marketplace Shake-Up: Amazon Thrives, Catch Closes, and Chinese Platforms Face Challenges—Pattern
Cited text: Shein faces similar struggles, with just 11 per cent consumer trust.
Excerpt: Shein faces similar struggles, with just 11 per cent consumer trust.
https://au.pattern.com/blog/austral...closes-and-chinese-platforms-face-challenges/
Australian Marketplace Shake-Up: Amazon Thrives, Catch Closes, and Chinese Platforms Face Challenges—Pattern
Cited text: Only 43 per cent of shoppers say they would consider buying from Temu in 2025— a figure that may decline further unless improvements in quality and delivery a...
Excerpt: Only 43 per cent of shoppers say they would consider buying from Temu in 2025— a figure that may decline further unless improvements in quality and delivery are made.
https://au.pattern.com/blog/austral...closes-and-chinese-platforms-face-challenges/
Our Company—Premier Investments
Cited text: Smiggle operates over 300 standalone stores across Australia, New Zealand, Singapore, Malaysia, United Kingdom and the Republic of Ireland.
Excerpt: Smiggle operates over 300 standalone stores across Australia, New Zealand, Singapore, Malaysia, United Kingdom and the Republic of Ireland.
https://www.premierinvestments.com.au/about-us/
Australian brands face increasing pressure from ultra-cheap Temu and Shein. More than 2 million Australians shop on these platforms each month—Roy Morgan Research
Cited text: “But it remains to be seen whether Temu will really stick—the current numbers indicate that a lot of people are trialing the platform, so we’ll see ...
Excerpt: The current numbers indicate that a lot of people are trialing the platform, so we'll see if that holds over 2024 as customers assess the quality of products that arrive at their door.
https://www.roymorgan.com/findings/9471-growth-of-temu-shein-in-australia-february-2024
Amazon leads Australian marketplace as Catch closes down
Cited text: Amazon has further strengthened its position as the premier marketplace in Australia. The platform gained 1.1 million new Australian users in 2024, am...
Excerpt: Amazon has further strengthened its position as the premier marketplace in Australia.
https://ecommercenews.asia/story/amazon-leads-australian-marketplace-as-catch-closes-down
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