Specialty Fashion Group continued to lead in womenswear with a 6% retail value share. The company experienced a minor decline in value sales as a result of the closure of several underperforming stores. During 2013 the company focused on the rationalisation of its real estate portfolio which led to the closure of several outlets. In addition, sales were also negatively affected by the termination of the licence agreement with lingerie brand La Senza, which did not succeed in the Australian market due to seasonal and demographic complexities. This situation led to the closure of 17 physical stores and the online store for La Senza in the first half of the year.
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Competition is expected to strengthen as industry participants fight for the consumer dollar. Consolidation is expected to continue with independent designers either being acquired by larger groups or partnering with department stores such as Myer and David Jones through exclusivity contracts, which provide them the necessary scale and support to compete in the local market.
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