Another Australian retailer has announced that they are closing their doors due to the apparent impact of online shopping on the retail market.
Australian designer Alex Perry will close down his flagship store on the Strand Arcade in Sydney’s CBD next month.
Perry said that the decision only made sense due to the change in the retail market, with in-store customers dwindling as online shopping continues to boom.
The fashion designer says that the closure of the Sydney store in March will allow his focus to remain on the online store.
“Why would I renew that lease for another three, four, five years when it is far more economical and we make a lot more money online that we do with all the expenses you incur when you have bricks and mortar,” Perry told the Daily Telegraph.
“Business-wise if it making more sales online and the costs are significantly less, then you can do other stuff with that money.”
Perry also blamed recent construction on the light rail in Sydney’s CBD for impacting foot traffic and therefore sales at stores nearby.
Despite the closure, Alex Perry said that he doesn’t think physical stores are completely dead but that retailers must adapt in order to survive.
“I don’t think it is dead and I am not saying I won’t ever had a store again. I just think we need to raise our standard of service in bricks and mortar stores to allow them the best possible chance of surviving against a dynamic online environment,” he said.
This is just the latest closure in what seems like a retail apocalypse in the Australian market, with more than 170 stores tipped to close this year.