Premier Investments shutters Peter Alexander stores in the UK, citing poor trading conditions

Solomon Lew’s popular sleepwear brand Peter Alexander will shutter its three stores in the UK after less than two years, becoming the latest Australian retailer to pull out of the tough British market.

In a trading update on Wednesday, Premier revealed it had also trimmed its earnings expectations for the 2026 financial year, with underlying profit now expected to be about $176 million, down from the $183m provided in March.

Sales for Premier retail — which consists of Peter Alexander and kids stationery giant Smiggle — were forecast to be 2 per cent lower on 2025 to $795.5m.

Mr Lew said discretionary retail conditions in the second half have been “very challenging”.

Premier said the board had decided to close the UK Peter Alexander stores — located in Bluewater, Stratford and White City — following sustained difficult trading conditions and a negative outlook for the local economy.

UK customers will continue to be served by Peter Alexander online.

Mr Lew said its decision to close the stores allowed it to “concentrate our investment where the brand is performing strongly”.

“Our entry to the UK market was phased to allow us to test market response,” he said.

“Premier has strict store profitability and return hurdles and we allocate capital prudently on behalf of our shareholders.

“We have decided to channel our growth capital for Peter Alexander into our Australia and New Zealand markets, online and potentially capital-light wholesale which we continue to explore with global partners.”

Peter Alexander entered the UK market in late 2024, with two stores in London and one in Kent.

Mr Lew said Smiggle would continue to operate in the UK given the brand was already well-established.

At least five new Peter Alexander stores were planned for Australia and NZ during the first half of the 2027 financial year, including a flagship store in the Sydney CBD in October.

Premier also said the pyjama brand would return to 24 Myer stores from next August following an approach from the Olivia Wirth-led department store, where Mr Lew is the biggest shareholder and is on the board.

Wesfarmers in 2018 pulled the pin on Bunnings’ botched $2 billion foray into the UK hardware market.

More recently, Sigma-owned Chemist Warehouse ended talks to buy British pharmacy giant Boots.