According to leading retail expert Gary Mortimer, companies are reevaluating the necessity of brick-and-mortar shops, with some opting for a hybrid online-offline model.

“Margins are getting squeezed, which I believe is why we are witnessing more retailers closing some physical outlets and shifting more of their operations online,” Mortimer stated.

Country Road is the latest brand to reassess its retail portfolio after it closed its landmark store inside the Queen Victoria Building in Sydney in a move the company said would ”ensure we’re continuing to meet the needs of our customers”.

“We are committed to delivering great experiences throughout our networks and we are investing in our stores, with 10 new or refurbished stores opening by the end of the year,” the spokesperson said.

“This includes our beautifully renovated Mosman store reopening in September, a new Country Road flagship store in Queen Street, Brisbane opening in August and three new stores opening in Chatswood Chase in October.”

Mortimer said the cost of rent at flagship locations could come at an “astronomical” cost for some businesses.

“Flagship stores really only work now today for global brands that can afford the commercial real estate and you can underpin those costs with global sales,” he said.

“If you’re an Australian fashion retailer, you don’t have a global revenue stream, it’s a very costly exercise to maintain those premises.”

In order for brands to withstand challenges in Australia, Mortimer said must evolve and widen their range to cater to a range of consumers.

“RM Williams readjusted their range several years ago to target that younger market, the 25- to 35-year-old market to replace an aging consumer group,” he said.

“I think good fashion businesses, particularly those that are 50 to 60 years old, need to constantly reinvent themselves so they are always attracting a new market.”