Weak retail conditions, high wage and rent costs, and fierce competition from emerging online players.
These have been identified by IBISWorld as some of the major factors negatively affecting the Australian clothing retail sector.
The challenging operating conditions have caused many prominent brands across the retailing industries to enter administration.
Over the past year alone, some of the casualties have included David Lawrence, Marcs, Payless Shoes, Pumpkin Patch, Rhodes & Beckett, Herringbone, Seduce, Laura Ashley, Josh Goot and Kit & Ace.
IBISWorld found numerous new competitors, including online retailers and international fast-fashion brands, and challenging economic conditions have changed the way consumers spend.
IBISWorld senior industry analyst Lauren Magner said the landscape has dramatically changed.
“Consumers have become accustomed to buying items on sale, as retailers have undertaken heavy discounting in recent years to clear excess stock and attract demand.
"At the same time, weak consumer sentiment has encouraged bargain hunting, leading to price becoming an increasingly important aspect of competition."
While traditional retailers have found the conditions challenging, online retailers have been well positioned to benefit from these trends, according to Magner.
“As online stores generally have lower overheads compared with their bricks-and-mortar counterparts, they can offer more competitive prices.
"Local bricks-and-mortar stores have struggled to compete as consumers, often armed with smartphones, can quickly compare in-store prices with those offered online, which are often cheaper.
“Local retailers have also faced further competition from an influx of international retailers such as Zara, H&M, Uniqlo and Topshop.
"These companies generally have stronger economies of scale compared with Australian retailers, and vertical integration, which provide substantial competitive benefits.
"Fast fashion brands can quickly update their ranges to target changing styles and trends, which appeals to many fashion-conscious and price-sensitive consumers.”