Cue and Veronika Maine are the latest retailers to fall into receivership. An RMIT expert says their collapse isn't about fashion trends, but about the changing economics of retail.
Associate Professor Carol Tan, School of Fashion and Textiles:
"Consumers are still spending, but they're becoming much more selective about where they spend their money.
"Cue built a strong reputation over almost six decades for quality womenswear. The challenge wasn't necessarily the product but whether the economics of the business remained sustainable in a rapidly changing retail environment.
"Reports from the receivers suggest sales had improved, but overhead costs remained too high. That indicates the challenge wasn't simply attracting customers, but generating sufficient margin to support costs associated with operating a large retail network.
"Brand heritage remains valuable, but it's no longer enough on its own. Consumers can compare products, prices and brands instantly, so retailers need a compelling reason for customers to choose them.
"The brands that are succeeding today aren't just selling products. They're offering a clear value proposition. Whether that's innovation, functionality, quality, sustainability or solving a specific customer problem, consumers increasingly want to know why a brand matters.
"Cue and Veronika Maine still have strong brand recognition and customer loyalty. A future owner may well see value in those brands. The key question will be what business model and store footprint make sense in today's retail environment."
Dr Carol Tan is an Associate Professor and Program Manager of the Master of Fashion Entrepreneurship at RMIT University, with research expertise in SME competitive advantage, growth strategies and enterprise resilience.
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