Shop-killing trends to blame for Australia's 'retail killing season' following ...

Administrator in charge of collapsed brand Jeanswest reveals the shop-killing trends he blames for Australia's 'retail killing season' Clothing retailer Jeanswest was placed into administration last month  The shift to online shopping contributed to the demise of brick and mortar stores Black Friday and click frenzy sales in November steer consumers online Administrators are surprised by how much debt some companies have acquired

By Alana Mazzoni For Daily Mail Australia

Published: 06:08 GMT, 29 January 2020 | Updated: 06:08 GMT, 29 January 2020

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In the midst of a 'retail apocalypse', the administrator in charge of collapsed clothing brand Jeanswest has revealed the trends closing down hundreds of stores in Australia.

KPMG partner James Stewart said Jeanswest had been losing money for many years, and cited consumers switching to online retailers as a reason for its demise. 

Mr Stewart, who was appointed administrator of the Australian operations of the fast- retailer, also blamed flash sales for the collapse of brick and mortar stores.

Black Friday, Cyber Monday and Click Frenzy sales that operate in November steer consumers online and away from stores.

Jeanswest owes creditors up to $50million but the cost could spiral higher once staff of the collapsed clothing retailer are paid out

Jeanswest owes creditors up to $50million but the cost could spiral higher once staff of the collapsed clothing retailer are paid out 

'If you're doing twice the sales in November at half the margin, I don't think that makes for a good Christmas,' Mr Stewart told the Australian Financial Review.  

Mr Stewart said online sales make up 17 per cent of non-food retail sales in the country, 3 per cent of food and grocery sales, and 9 per cent of total retail sales.

Despite Bardot and Harris Scarfe - who both collapsed in the last year - having a large online presence, the change from in-store to web shopping hit their brick and mortar business hard.

KPMG partner James Stewart - who was appointed administrator of the Australian operations of Jeanswest - said the retailer had been losing money for many years, and cited consumers switching to online retailers as a reason for its demise

KPMG partner James Stewart - who was appointed

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