Retail ‘killing season’: Experts tip more collapses to follow Barbeques Galore, Glue Store, Lincraft

The besieged retail sector is in the midst of a “killing season”, one expert says, following the recent collapse of a string of well-known brands.

And in a grim prediction, Gary Mortimer, from Queensland University of Technology, warns there is more to come before the end of the financial year.

“As we move into the end of the financial year, I often refer to this time as the killing season,” he said.

“It’s a time when CEOs, executive leadership teams and boards are looking at the numbers for the financial year, realising that they . . . may make a loss and they’re making those really tough decisions.”

Youth-focused Glue Store and fabric, crafts and homewares chain Lincraft this week became the latest to succumb to the retail malaise gripping the nation.

Their demise came just over a week after Barbeques Galore’s last-ditch rescue deal collapsed, with up to 500 jobs in jeopardy.

At the time, receivers said creditors had backed an agreement to keep Barbeques Galore operating but failed to reach commercially acceptable terms with landlords and suppliers. Barbeques Galore fell into administration in February.

The winding-up process was expected to start this week. It is expected to result in 62 stores closing, and “transitional arrangements” put in place for the remaining 27 franchisee-owned and operated stores.

Consumer expert Trent Rigby said it was easy to blame a weak economy and while the cost-of-living crisis was very real, it doesn’t paint the whole picture. He said the challenging retail environment separated the strong operators from the weak ones.

Mr Rigby said Lincraft and Barbeques Galore failed because of their “single-category speciality trap”.

“The bigger problem is the (craft) category commoditised under Lincraft,” he said.

“The everyday craft shopper can now get ‘good enough’ from Kmart, or even cheaper craft products from Temu, Shein or Amazon without driving to a specialist.”

It’s the “exact same trap” for Barbeques Galore, Mr Rigby says.

“Why pay a specialist like Barbeques Galore when Bunnings has a good barbeque at a better price and you’re there anyway,” he said.

“I also think the failure was to a large degree self-inflicted. Barbeques Galore and Lincraft both blamed the ‘weaker economy’, but I never saw either of them do anything meaningful to win a younger customer.”

Department stores are also under pressure, both in Australia and abroad, with big US brands Saks Fifth Avenue and Neiman Marcus collapsing amid pressure from online giants.

Marketing and retail analyst Barry Urquhart said the nation’s department store chains would have a slow attrition, rather than a full collapse.

“Close to three years ago, both David Jones and Myer said we’re going to reduce the number of our department stores by 20 per cent and we’re going to reduce the lettable area by more than 20 per cent,”

“When you go to Myer once upon a time, I think it was four storeys or five, now it’s kind of contracting.”

Under-pressure David Jones slumped to a near $96 million loss in 2025 and a worsening pre-tax loss of $95.5m.

Under boss Olivia Wirth, Myer has had to overhaul its offerings, particularly in clothing and beauty, after conceding it needed to broaden its appeal to young shoppers.

Australian Retail Council chief economist Glenn Fahey welcomed the Reserve Bank’s decision to hold interest rates this week but said it provided little relief from the pressure facing retailers and consumers.

“Unfortunately, ASIC figures show retail insolvencies are running almost 20 per cent higher than the same period last year, with retail experiencing one of the largest increases in business failures of any major industry sector,” he said.

“Without (government) action, more retailers will face difficult decisions around investment, employment and growth as they navigate one of the most challenging operating environments in recent memory.”