“Part of that growth really did come from refining that and cutting the tail off all the little things that didn’t really add up to much.”
The new Country Road Home store in Albert Park, Melbourne.
Founded in Australia in 1974 by Steve Bennett as a woman’s shirting business, Country Road was bought by Myer and listed on the ASX in 1987. Parent Woolworths Holdings (no connection to the Australian supermarket) has owned a controlling stake since 1998, acquiring the entire business in its purchase of David Jones in 2014 after buying retail billionaire Solomon Lew’s stake for $210 million.
Last May, Country Road Group chief executive Raju Vuppalapati came under fire over the handling of internal complaints after some staff accused former executive Rachid Maliki of sexual harassment and bullying.
Woolworths Holdings engaged an external adviser to investigate how the complaints were handled, concluding that further reviews of complaint handling and internal processes were necessary. There was disciplinary action against some employees, though the company declined to comment further.
After extracting Country Road Group from David Jones – the two groups had shared office space and back-end infrastructure – Woolworths Holdings has been conducting a “significant restructure to reconfigure its operating model and reset its structural economics as a standalone business,” according to company documents.
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The turbulent period for the fashion retailer has also triggered the departure of a string of senior managers. Elle Roseby, who led the Country Road brand, has since joined homewares business Adairs.
Meanwhile, fashion retailers under challenge from lower foot traffic and consumer spending respond with higher markdowns and promotions.
Roseby’s replacement, Helen Wright, started in her new role as managing director last week. Wright returned to Australia for the role after decades in Europe and the UK, leading luxury brands including Italian luxury shoe brand Sergio Rossi, Fendi, Karl Lagerfield, Anya Hindmarch, Ralph Lauren and more. She was not available for comment.
A replacement is being sought for Vuppalapati, who is expected to leave the business, The Australian Financial Review has reported. This masthead does not suggest Vuppalapati’s expected exit is linked to the handling of complaints.
There are more than 650 Country Road stores in Australia, New Zealand and South Africa.
The homewares division, which in 2019 accounted for 8 per cent of the Country Road brand’s overall sales, has since grown to 12 per cent. “All categories are still growing,” said Symonds, and the group intended to enlarge the apparel store footprint.
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