Australian fashion retailer Glue Store has permanently shut down its remaining stores and online platform, bringing nearly three decades of trading to an end amid mounting challenges across the country's retail sector, according to multiple media reports.
The retailer confirmed the closure in a brief statement on its website, announcing that both its physical and digital operations had ceased.
"After many years of bringing you the styles you love, Glue Store has permanently closed — both in store and online," the leadership at Glue said.
"We are so grateful for your loyalty and support over the years. The good news? Our family of brands is still here for you, with the same great range and the style you expect,” it added.
The company did not disclose how many employees would be affected by the closure.
Retail Struggles Intensify
The shutdown follows a difficult period for the fashion chain, which was founded in 1998 and built a reputation as a premium fashion retailer in Australia.
Signs of trouble first emerged in 2024 when Glue Store announced plans to close around half of its outlets due to underperformance. The final blow came in February this year when parent company Accent Group declared the business unprofitable and revealed that the remaining 16 stores would be closed if a buyer could not be found.
Glue Store recorded a loss of $8.4 million during the first half of the 2026 financial year, including provisions linked to the planned closure of the business.
Its website has now stopped accepting orders and redirects customers to other Accent Group brands, including Dr Martens, Lacoste, Platypus and The Athlete’s Foot.
Accent Group acquired Glue Store and the Next Athleisure wholesale and distribution business for $13 million in 2021.
Final Melbourne sale
Ahead of the closure, Glue Store launched a final clearance campaign for its Melbourne Emporium location.
"Our online store may be closed, but this is your last call to shop with us in person," the retailer said on social media.
"We’re closing our Emporium Store in Melbourne, and we’re going out with a bang."
The promotional event offered significant discounts as the company prepared to exit the market completely.
Consumers pull back
Glue Store's closure comes as Australian retailers face increasingly difficult trading conditions, with consumers cutting back on discretionary spending amid persistent cost-of-living pressures.
Recent national accounts data showed discretionary spending remained subdued as households grappled with higher borrowing costs, rising fuel prices and broader inflationary pressures. The household savings ratio also declined, highlighting the financial strain facing many consumers.
Westpac senior economist Matthew Hassan said economic momentum was continuing to weaken.
"The Australian economy is showing clearer signs of a loss of momentum," he said.
"The March quarter national accounts revealed a clear softening in activity, with demand near flat outside of a pick-up in data centre-related investment.
"[Westpac's] May Leading Index shows this sluggish, below-trend growth momentum is likely to continue through the second half of 2026 and into early 2027."
Hassan also noted that the full impact of recent interest rate increases had yet to be felt across the economy.
"While the growth pulse is still not overly weak, it's likely to take some time yet before the full negative impacts from higher interest rates and the spike in fuel costs become apparent," he said.
Perfect Storm
Retail analysts say the sector is being squeezed by a combination of economic pressures that are reshaping consumer spending habits.
"What we are seeing across the retail sector is the impact of an increasingly challenging economic time," Queensland University of Technology professor Gary Mortimer said.
"It is the perfect storm."
Dr Mortimer said rising rents, higher interest rates and ongoing inflation had significantly increased household expenses.
"As a result, Australians are more focused on paying their rent or mortgage, putting food on the table and fuel in their cars, and less focused on buying an outfit," he said.
Glue Store joins a growing list of retailers scaling back or shutting operations, with Barbeques Galore recently announcing store closures and Lincraft moving to close all of its physical locations, underscoring the challenging environment facing Australia's retail industry.