Breaking: Glue Store closes after posting $8.4m loss

Glue Store posted the announcement on its website. (Glue Store)

Australian fashion retailer Glue Store has announced its permanent closure.

"After many years of bringing you the styles you love, Glue Store has permanently closed — both in store and online," Glue said in a statement.

"We are so grateful for your loyalty and support over the years."

Glue's closure follows Barbeques Galore's announcement that it will shut down, and Lincraft's move to shut all its physical stores.

It will shut its 62 company-owned stores in the coming weeks and work through "transitional arrangements" with 27 franchise stores. Hundreds of staff are facing redundancy.

Accent Group entered an agreement to acquire the Glue Store and the Next Athleisure's wholesale and distribution business for $13 million in 2021.

In February this year, Accent announced the Glue business would be wound down.

The store is no longer taking orders and is directing shoppers to its wider Accent Group brand sites.

There is mounting evidence the economy is slowing, affecting how much shoppers spend on discretionary items.

The latest national accounts showed discretionary spending was "subdued", the ABS said, as higher interest rates and increased fuel costs likely influenced cautious consumer behaviour across most categories.

Retailer Lincraft will close the remainder of its shopfronts after more than 80 years of providing fabric, materials and homewares to Aussie crafters.

The household savings ratio also fell to 6.2 per cent from 7.0 per cent as wages growth struggled to keep pace with the rising cost of living.

Westpac senior economist Matthew Hassan said.the economy was likely to slow further.

"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."

Mr Hassan points out that the three interest rate hikes issued by the Reserve Bank this year are yet to full work their way through 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.