Company shrinks retail footprint by nearly half, eyes profitable future
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The Australian retail landscape is undergoing a seismic shift, and the latest tremor comes with the news that more than a dozen Glue Stores are set to disappear from our shopping precincts.
In a sobering announcement to the Australian Securities Exchange, Accent Group, the parent company of the famous clothing retailer, has revealed plans to reduce Glue Store's footprint across the nation significantly.
Accent Group has decided to shut down 17 Glue Stores deemed 'underperforming,' a move that will almost halve the number of outlets.
This consolidation leaves 18 stores, alongside the online shop, which are 'expected to be profitable' in the 2024-25 financial year.
The announcement has left many questions unanswered, including the specifics of which stores will face closure, the exact timeline for these changes, and the number of jobs that may be impacted.
Accent Group's chief executive, Daniel Agostinelli, has shed some light on the company's financial health, citing an earnings forecast before interest and taxes at the end of the 2023-24 financial year to be between $109.0 and $111.0 million.
Agostinelli also noted an uptick in trading conditions in the latter half of the 2023-24 financial year, with sales climbing by 1.7 per cent compared with the previous year.
‘I am pleased with our retail performance in H2, where the company continued to experience strong momentum in Skechers, The Athlete’s Foot, Hype DC, Stylerunner, Nude Lucy, and Hoka, amongst others,’ he said.
‘The decision to exit the 17 underperforming stores will allow the Glue Store management team to focus on a profitable business comprising 18 stores, including digital.’
In related news, Marquee Retail Group, which owns Colette by Colette Hayman and The Daily Edited, has entered voluntary administration due to financial troubles.
Despite this, all 60 stores remain open, and the company plans to retain its 400 employees. For more details, click here.
Have you been affected by the closures? What are your views on the shifting retail environment? We’d love to hear your insights in the comments below.
In a sobering announcement to the Australian Securities Exchange, Accent Group, the parent company of the famous clothing retailer, has revealed plans to reduce Glue Store's footprint across the nation significantly.
Accent Group has decided to shut down 17 Glue Stores deemed 'underperforming,' a move that will almost halve the number of outlets.
This consolidation leaves 18 stores, alongside the online shop, which are 'expected to be profitable' in the 2024-25 financial year.
Accent Group will close 17 underperforming Glue Stores across Australia. Credit: Shutterstock
The announcement has left many questions unanswered, including the specifics of which stores will face closure, the exact timeline for these changes, and the number of jobs that may be impacted.
Accent Group's chief executive, Daniel Agostinelli, has shed some light on the company's financial health, citing an earnings forecast before interest and taxes at the end of the 2023-24 financial year to be between $109.0 and $111.0 million.
Agostinelli also noted an uptick in trading conditions in the latter half of the 2023-24 financial year, with sales climbing by 1.7 per cent compared with the previous year.
‘I am pleased with our retail performance in H2, where the company continued to experience strong momentum in Skechers, The Athlete’s Foot, Hype DC, Stylerunner, Nude Lucy, and Hoka, amongst others,’ he said.
‘The decision to exit the 17 underperforming stores will allow the Glue Store management team to focus on a profitable business comprising 18 stores, including digital.’
In related news, Marquee Retail Group, which owns Colette by Colette Hayman and The Daily Edited, has entered voluntary administration due to financial troubles.
Despite this, all 60 stores remain open, and the company plans to retain its 400 employees. For more details, click here.
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