What successful Aussie retailers all have in common

The internet is not the only thing killing off household Australian shops after decades, retail experts say.

Instead, the firms going belly up are failing to understand their customers, are not moving with the times nor are combining their online shops with their bricks-and-mortar stores.

Fashion chains Jeans West and Bardot are just the latest victims of the high street bloodbath, with both going into voluntary administration over the past few weeks.

Executive Director of the Australian Retailers Association Russell Zimmerman said the long list of failing firms have a number of things in common.

"If a retailer really does understand the market they're in, whether they're online or not online, I think that that's the first and most important thing," he said.

"The retailer should know the customer before they walk in.

"I think the other reason why some of these retailers may go, is unfortunately they may not have moved quick enough with the times."

He added that more recently, the bushfire crisis has taken the country's minds off spending, making times even tougher.

However, it's not just in Australia where retailers are failing - retailers across the world are feeling the pain.

UK high street seeing the fifth straight year of falling sales according to The Telegraph.

However, many Aussie firms are thriving, despite hard times.

Electrical giant JB Hifi made almost $250m profit last year.

Also doing well is fashion firm Universal Store, which is gearing up to float on the stock market.

Business is booming at affordable fashion company Cotton On, the county's biggest private clothing brand.

It turned over more than $2b in the last financial year, according to business analysts IBISWorld.

Brian Walker from Retail Doctor Group said Cotton On understands the desire for fast fashion to appeal to young shoppers.

It's something UK online retailers such as ASOS and Boohoo, which both retail in Australia, have built a business on.

"They're right into that tweens, millennials, tweenage market," Mr Walker said.

"They understand the idea that demographic doesn't tend to buy long lasting goods, and they have very strong social media.

"There's always something new in the stores, they're just very clever."

Kids stationery firm Smiggle and suit specialist MJ Bale, both of which have stores as well as websites, are also doing well.

While Kmart's success has cooled a little, the discount store is still a customer favourite.

Bunnings and Officeworks, which also belong to retail group Wesfarmers, are also thriving.

Rebel Sports owners Super Retail Group, made over $314 pre-tax profit last year, according to the SMH.

And the firm which owns brands including Athletes Foot and shoe favourite Hype DC, delivered a 22.5 per cent increase in net profit to $53.8 million last year, according to the AFR.

Meanwhile, international brands such as H&M, Uniqlo and Zara also have tills ringing.

Mr Walker also believes that sometimes companies simply reach the end of their lifespan.

"When you look at a business like Jeans West, it's 48-years-old, it's had an almost 50 year run, it's five per cent of companies that live to be 100 years.

"The markets changed around them."

The key to success is to have a slice of both bricks-and mortar and online retail spaces, and integrate them well, he said.

Gallery: Victims of the Australian retail crisis

Because while online shopping is responsible for nine percent of spending in Australia not all online firms are seeing big success either.

One of Australia's most popular fashion sites, The Iconic, reported $18m losses in 2018, though Mr Walker said it's looking at breaking even this year.

The high cost of free returns and the price of shipping are an issue.

"That's why you find the better results where you've got the store and the online working together," he said.

Of course global giant Amazon, still relatively new in Australia, is snapping at retailers' heels.

Though it made a loss, sales more than doubled in 2019 and are forecast to reach $23 billion in 10 years, the AFR reports. 

"The thing to watch with them is their Amazon Prime (subscription service) uptake," Mr Walker said.

AUSSIE RETAILERS THAT HAVE CLOSED IN THE LAST 12 MONTHS:

Curious Planet: The science store, formerly known as Australian Geographic is set to close 63 stores.

Napoleon Perdis: Beauty retailer entered voluntary administration, with stores closing across the country.

Criniti's Restaurant: Popular restaurant chain entered voluntary administration, with several of the 13 sites across the country set to close.

Bardot: Women's fashion retailer will shut vast majority of its stores over the coming months. 530 jobs will be lost.

McWilliams Wines: Country's sixth-largest wine company appointed voluntary administrators. Had been run by same family for more than 140 years.

EB Games: Video game retailer closing at least 19 stores in 'unprofitable' locations across the nation.

Red Rooster: Closed seven Queensland stores in October 2019, leaving 100 staff without jobs.

Ed Harry: Menswear retailer went into voluntary administration and closed all 87 outlets across the country.

Harris Scarfe: Australian department store placed into voluntary administration in mid-December.

Karen Millen: British fashion giant closing all Aussie stores, leaving 80 people without work.

Muscle Coach: Leading fitness company put into voluntary administration after company racked up debts of almost $1 million.

Dimmeys: Discount retailer closed its doors for good after 166 years of trading.