Did you even go on a hiking trip if you didn’t hit up Kathmandu first? This beloved outdoor retailer has been a saviour for adventurers around the world, selling everything from black puffer jackets (Australia’s unofficial winter uniform) to three-season sleeping bags, packable hammocks and collapsible coffee cups. But sadly, your local Kathmandu store could be closing soon.
In September, KMD Brands – a New Zealand-based retailer that also owns Rip Curl and footwear brand Oboz – announced plans to shut more than 20 Kathmandu stores worldwide in the next financial year, including 14 in Australia. That represents just under ten per cent of the brand’s 170 stores across the country.
The news comes as part of an “organisational restructure” revealed during KMD Brands’ latest strategy rollout, aimed at boosting profits in the next financial year. Despite a one per cent increase in sales last year, the business recorded a hefty annual loss of $83.1 million, with underlying net losses climbing to $25.12 million – a big jump from $980,000 the previous year.
However, it’s not all bad news! As part of the shake-up, KMD plans to add six new stores to its global network, including three flagship Kathmandu concept stores. These will feature updated layouts, offer a more personalised shopping experience and integrate digital and data-driven initiatives to improve decision-making and supply chain management. On top of that, same-store sales for the outdoor retailer jumped 22 per cent in the first seven weeks.