Beleaguered Country Road Group blames struggling economy for sales tumble

November 12

Sales at Country Road Group have tumbled further, with the beleaguered fashion retailer blaming sustained effects of higher interest rates and elevated living costs.

In its latest trading update to the Johannesburg Stock Exchange, the retailer’s South Africa-based parent company, Woolworths Holdings, said operating conditions in Australia and New Zealand continued to prove more challenging than anticipated.

Sales for Country Road Group — behind brands Mimco, Witchery, Politix, Trenery and the eponymous parent — declined 8.8 per cent in the 18 weeks ended November 3, and 13.8 per cent on same-store basis.

This follows a 6.8 per cent fall in Country Road Group’s annual revenue for the 2024 financial year.

Woolworths Holdings said the retail sector in Australia and New Zealand faced further declines in footfall, intense promotional activity and the shift of spend towards value brands.

“Notwithstanding the challenging macroeconomic backdrop, the Country Road brand remains resilient, and Trenery is delivering strong top-line growth, following the repositioning and re-branding of its offering,” the group said.

“We remain focused on improving the positioning and performance of the other brands, particularly Witchery.”

Country Road Group earlier this year was engulfed in sexual harassment and workplace bullying claims at its Melbourne headquarter.

It commissioned an independent investigation in April after receiving feedback from team members about the handling of their complaints.

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