The vanishing middle: What three retail brand closures in a week tell us

The vanishing middle: What three retail brand closures in a week tell us

Over the past week alone, three legacy Australian retail brands announced permanent closures: Glue Store, Barbecues Galore, and Lincraft. An RMIT expert explains that these were not failing businesses that lost relevance overnight, but reflect a wider shift in the mid-market retail sector.

Associate Professor Carol Tan, School of Fashion and Textiles: 

"These brands span fashion, outdoor lifestyle, and craft, which tells us this is not a sector-specific crisis but a fundamental shift in the fortunes of physical, mid-market retail.

“These were not failing businesses that lost relevance overnight. What undid them was a combination of cost-of-living pressure, rising operational costs, and a fundamental shift in how Australians shop.

“It is telling that Glue’s own parent company, Accent Group, continues to operate specialty sneaker and streetwear formats successfully. They didn’t exit physical retail. They exited the undifferentiated middle of it.

“Australian brands which succeed build tight, loyal communities around a specific identity. They own their customer relationships directly rather than relying on third-party retail. They are digital-first but not digital-only, using physical presence strategically rather than as their primary distribution model. And they stand for something specific enough that customers seek them out.

“Physical retail isn’t dying, but what consumers have stopped doing is making trips for retailers that give them no compelling reason to be there.

“These three closures in a single week are not a story about the death of retail stores. They are a story about the death of the undifferentiated middle.

“Succeed at the value end, succeed at the experience and specialty end, and you will have customers. Exist somewhere vaguely in between with nothing distinctive to offer, and you won’t.”

Dr Carol Tan is an Associate Professor and Program Manager of the Master of Fashion (Entrepreneurship) specialising in entrepreneurship, sustainability, and the evolving fashion landscape.

***

General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

19 June 2026

Share

Return to RMIT News
19 June 2026

Share

Engage

Related News

bmw-your-melbourne-thumbnail-1220x732.jpg

Treasury threatens to break up the big four accounting firms as scandals mount

A Treasury options paper has been released on the regulation of accounting, auditing and consulting firms in Australia, to address gaps in regulation of audit firms. An RMIT expert explains the impact this review might have on the professional services sector.

Shelves with juices in a supermarket.

Why shoppers may still feel ripped off under new supermarket price gouging laws

From 1 July, Coles and Woolworths face fines of up to $10 million for item prices which are significantly excessive against the cost of supply. An RMIT expert explains why this will be difficult to enforce in practice, and even harder to win back the trust of customers.

blurred-business-crowd-thumbnail.jpg

Why CGT concessions are needed to fuel technological innovation and startups

Changes to capital gains tax are set to pass Parliament this week. An RMIT expert explains why concessions for startup businesses are needed to ensure local innovation and industry remain strong.

Outside of a Kmart store

Kmart’s K Home is selling more than furniture – it’s selling customer confidence

Kmart’s first store dedicated to affordable homewares, K Home, has been drawing a crowd of shoppers and influencers alike. An RMIT expert reveals why the new store’s hype explains a desire for retailers to reduce decision fatigue, provide inspiration and make it easier to create an aspirational lifestyle.

Show more
aboriginal flag float-starttorres strait flag float-start

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.

More information