Country Road Group, owned by Woolworths Holdings, has shut down several stores across Australia amid a 6.2% sales decline in the first half of the 2024-25 financial year, reflecting a turbulent year for the retailer.

Woolworths Holdings reported an 8% decrease in sales and a 71.7% drop in operating profit to $14.2 million for the 26 weeks ending December 29, 2024, highlighting ongoing financial challenges.

The company’s struggles are compounded by a series of store closures, including flagship locations in Sydney’s Queen Victoria Building and stores in Mosman, with some set to close when leases expire in 2028.

The CEO of Country Road Group, Raju Vuppalapati, announced his resignation effective at the end of August 2025, amid complaints handling issues and the financial downturn.

The brand has faced a 'perfect storm' of challenges, including an investigation launched in May 2023 following complaints against a former executive.

In October 2024, retail giant Mosaic Brands entered voluntary administration with debts exceeding $318 million, illustrating broader struggles within the retail sector.

Recent data suggests that easing business stress from tax cuts and fiscal support is helping some sectors, but discretionary spending remains fragile.

Several store closures include the flagship in Sydney’s Queen Victoria Building and a Trenery store in Mosman, with some locations undergoing renovations.

The Pitt Street Mall Country Road store will continue operating until its lease ends in 2028, despite plans for closure.

Following a difficult period, including complaints issues and financial losses, the company is seeking new leadership, with Steven Cook appointed as the new CEO in June 2025.

Meanwhile, Sydney’s luxury retail scene remains vibrant, exemplified by the opening of a new Chanel store in Westfield Sydney’s Market Street, part of a $360 million luxury development.

Other Australian retailers like Jeanswest have also faced closures, with all stores shuttered in March 2025, resulting in 600 job losses.