Shoppers turn away from high-end fashion as retailers close doors

New Zealanders are turning away from high-end fashion when it comes time to refresh their wardrobes, with op shop chic likely to be a big look this summer.

Figures from Stats NZ show retail sale volumes per person have been falling for the last two-and-a-half years and some clothing retailers are feeling the pinch.

New Zealand designer Kate Sylvester will be closing down in 2025, Juliette Hogan has closed its Ponsonby store, and Smith and Caughey's has closed its Newmarket store and significantly downsized its CBD operation.

At the same time, the appetite for pre-loved, more affordable designer clothing is quickly growing.

Kate Sylvester's Ponsonby store closed its doors last weekend.

Shoppers in Ponsonby told RNZ it was sad news.

"I did go in and purchase two pairs of her favourite jeans that she styles because I didn't want to miss out.

"I've lived in this area for a long time, over 20 years ... it will be a sad loss," one woman said.

Another shopper agreed it was a shame.

"Because I do see that people do go in and buy stuff quite frequently, but I'm guessing volumes aren't enough to keep them where they currently are."

Designer Juliette Hogan said the retail landscape had shifted over the last 20 years.

"With kind of the economy, the way that it is at the moment, having three retail stores in Auckland is, I think, a luxury.

"Also with the changing face of Ponsonby, it's becoming far more hospitality-oriented as opposed to retail when we first started out."

The brand still had stores in downtown Auckland, Newmarket, Christchurch, and Wellington, but the business was adapting to changes in shopping habits, she said.

"So, we're looking at what stock we're putting in store, how much stock we're putting in store, the frequency that we're putting it in, how we communicate with our customers."

Some shoppers told RNZ their habits had changed when it came to buying clothes.

"I probably buy better-quality clothes that last for longer but buy less," one person said.

Another said they shopped less often, "going out like you know, every three months or something to a store to buy clothes is not something that's really in the habit anymore".

One woman said she needed to try things on before buying them. "I just think you need to look at the shape, the size, the fabrics. I like to probably buy more medium- to high-end clothing."

Another shopper said they solely thrifted their clothing. "I haven't bought anything new for two years, better [for] the environment sort of thing. [It's] kind of cool, you find a lot of the same kind of calibre of clothes, kind of like a Kate Sylvester, you'll find that for way cheaper."

Auckland University associate professor of marketing Michael Lee focuses on anti-consumption and consumer habits.

He said people were thinking twice about buying expensive clothing and there was more appetite for pre-loved clothing - not only for a unique sense of style but because the clothes had a story.

"This is the group that seems to be on the rise, that actually like the idea that the pre-loved clothing was, you know, as the term suggests pre-loved, so it's got almost like a soul or an essence that has existed before that came into their ownership."

Aidan Bartlett, the chief executive of pre-loved clothing marketplace Designer Wardrobe, said business was booming.

Designer Wardrobe had now expanded across the ditch to make trans-Tasman trading available and sales had increased five-fold since Covid, he said.

"It's actually growing around 15 to 20 percent annualised, which is massive when you compare it to other sort of categories, it's usually like five to eight percent, so seeing that level of growth is really exciting."

The growing membership was also down to increased awareness of the fashion industry's environmental impact, Bartlett said.

"Textile waste is actually the second-biggest polluter in the world, next to oil and people have just become a lot more aware of that and just wanting to reduce their carbon footprint, and pre-loved is a great way to do so."

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