Online Fashion Brands Expand Into Physical Stores Despite Industry Challenges

According to reports published by the Australian Broadcasting Corporation (ABC), a growing number of online-first fashion and beauty brands are expanding into physical retail spaces in Australia, even as several legacy retail brands face insolvencies and downsize their footprints.

Industry experts and brand executives have reported that the transition aims to integrate online and in-store experiences. While CreditorWatch data indicates that retail insolvency rates have risen since June 2022, several digital-native brands have continued to establish brick-and-mortar locations.

Key Retail Trends and Brand Expansion

• Princess Polly: The brand has opened physical locations, including on the Gold Coast and in Brisbane, following a US expansion and a Sydney opening. Chief merchandise officer Courtney Dres stated that customers are expressing a clear demand for physical stores.
• VRG GRL: Co-founder Daniella Dionyssiou noted that returning to in-store trading feels like a return to the brand's roots, having previously moved fully online in 2019 after starting as a physical store in Brisbane in 2008.
• Other Brands: Businesses such as Oz Hair and Beauty, Adore Beauty, Kikiva, and Mocka have also opened physical stores in recent years.

Expert Perspectives

Queensland University of Technology retail expert Gary Mortimer stated that omnichannel strategies can add value if managed carefully, noting that temporary or measured store openings can drive online engagement and provide the speed and immediacy customers seek.

Meanwhile, CreditorWatch chief executive Patrick Coghlan cautioned that moving from online to in-store trade requires careful management, particularly due to the sector's reliance on discretionary spending.

Retail analyst James Stewart suggested that retail failures are primarily driven by a loss of relevance rather than the physical retail environment itself, noting that physical stores can serve as a positive investment when executed effectively.

*Readers can verify original industry announcements and data through business registries and official corporate press releases.*