Stationery chain Kikki.K has become the latest Australian retailer to succumb to weak consumer sentiment amid a sector downturn. The Victorian-based business has fallen into voluntary administration, leaving 450 employees across a store network of 65 in jeopardy.
The company cited weaker operating conditions caused by the outbreak of the deadly coronavirus coupled with the summer’s devastating bushfires, but Queensland University of Technology retail expert Dr Gary Mortimer said there’s “other factors at play”. “It’s a type of product that’s highly exposed to discretionary spending, it's not a cheap stationery home office product,” he told.
And retailers that are dependent on discretionary spending seem to be more exposed to tougher times. “There’s also emerging competitors that have entered the market place like Smiggle that target a younger consumer but also Typo, which seems to be on trend at the moment and targeting a very similar customer.”
Founder Kristina Karlsson released a statement this afternoon saying the closure of the business caused “profound regret and sadness”. “This business began with a young girl’s dream 20 years ago and became an international success story with customers in over 150 countries,” she said in a statement.
The business was placed into administration by Cor Cordis.
The business was placed into administration by Cor Cordis.
