Low-price jewellery retailer Lovisa is set for a rustling ahead following the recent collapse of Colette by Colette Hayman, according to analysts at Citi.
In a flash note to investors, the analysts project that the short term will be a challenge for the low-price retailer, as Colette by Colette Hayman clears stock through heavy discounts of between 60 per cent and 80 per cent.
However, in the medium-term, the wind up of the Colette business opens market space for Lovisa.
“While this should be positive for Lovisa’s ability to gain market share, it may be partially offset by the ongoing Harli + Harpa rollout, which we consider to be more of a direct competitor to Lovisa, and is rolling out rapidly with 27 stores now open since launching in November 2024 (26 in Australia, 1 in South Africa).”
The Harli + Harpa business is a low-price retailer launched by Lovisa founder and former CEO Shane Fallscheer.
Colette by Colette Hayman is a subsidiary under Marquee Retail Group, which also owns The Daily Edited – another accessories brand that sells only online. Restructuring firm Mackay Goodwin is overseeing the wind-up of both Colette and The Daily Edited, with 400 jobs expected to be affected.
Colette’s recent collapse follows other fashion collapses, including Jeanswest which is set to close 87 of its 90-store fleet following the heavy discounting sell-off of more than $20 million worth of goods.
This is projected to affect those in the denimwear space.
Another casualty is footwear brand Wittner, collapsing in April this year, with administrators hoping for a buyer to snap it up. Currently, the brand’s website has store-wide discounts of between 30 per cent and 60 per cent, with its store fleet of 20 also believed to be running similar discounting strategies.