Independent woes: small retailers still battling GFC

 

SYDNEY: Chic Collections has closed its fourth store in 12 months as it continues to struggle with “really, really bad” market conditions.

Owner of the womenswear retailer and wholesaler, Daniel Keong, revealed he closed his sole Adelaide store this month, reducing his national store tally to five. Since the onset of the global financial crisis, Keong has closed a total of four stores across Melbourne, Sydney and Adelaide.

The shut-downs are in response to a retail climate that Keogh says is the worst he’s seen since he commenced local operations in 1994, and which he sees no signs of abating.

“People have changed the way they are buying. They don’t buy things before [an event], they buy things at the last minute,” Keogh said. “When you’re busy, you can cover if some of the stores don’t make money, mainly for customer convenience. But when it’s all the stores, you can’t cover the losses anymore”.

The retailer, a specialist in evening and party dresses, has also introduced cheaper and more casual designs as part of efforts to diversify its product offering. The first drops of the new product landed in store some months ago and continue to roll out weekly. The new garments are priced around $250 compared to Chic Collections’ established $370 to $700 price points. The new product features less beading and different fabrics, including polyster.

“We try to make the price as low as possible so we can sell those dresses, attract people and [encourage them to] come in the store,” Keogh said.

He added the business’ saving grace is its special order service, often utilised by customers searching for bridesmaid dresses. “Because we have those orders, that’s why I can carry on. Otherwise I’d be already closed down.”

Keong is hopeful things will change once summer sets in. “Sometimes you do whatever you can do and leave everything else to the gods.”

Erin O’Loughlin