After years of focusing solely on its own brands, Country Road is opening up to external labels with a new online platform. This marks a major change in its retail direction and is intended to attract new customers while offering a broader product range that complements its fashion lines. The aim is to expand without the added pressure of manufacturing more goods. This transition takes place during a financially challenging period for the company, signalling a fresh approach under newly appointed leadership.
Founded in 1974 as a shirt specialist, Country Road has since developed into a leading lifestyle retailer in Australia, New Zealand and South Africa. The company later integrated other labels including Witchery, Politix, Trenery and Mimco. Despite this expansion, Country Road has recently faced mounting losses and internal difficulties such as staff dissatisfaction and leadership turnover. Owned entirely by Johannesburg-based Woolworths Holdings since 2014, the brand is now working to reinvigorate its image and customer base.
In the past financial year, Country Road recorded a $161 million pre-tax loss, more than three times the previous year’s figure, along with a 6.5% fall in sales revenue. To support its recovery, the company is introducing complementary products such as skincare, home goods and accessories from popular international brands. The marketplace is set to feature items from Marimekko, Jurlique and Daniel Wellington at launch. These products will be sold online and fulfilled by third-party sellers, allowing Country Road to limit inventory risk.
This curated approach is similar to strategies used by retailers like Bloomingdale’s and JB Hi-Fi, who rely on platforms such as Mirakl to expand their offerings without increasing stock levels. Country Road is targeting niche but popular products such as luxury bedding inserts or in-demand fragrances that it does not produce. The goal is to enhance the customer experience and offer products that even long-time customers currently shop elsewhere to find.
Although financial and organisational hurdles continue, early signs of stabilisation are emerging. Group sales have increased, with a 3.3% rise over the 19 weeks leading up to early November. While some underperforming locations have closed, five new stores are expected to launch before year-end. According to Woolworths Holdings, the Australian retail market is slowly improving, suggesting that Country Road’s digital shift may be starting to show positive results if the company can effectively follow through.
