Glue Store closes after posting $8.4m loss as economic pain hits retailers

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

Major fashion retailer Glue Store, which posted an $8.4 million loss this year, announces it is shutting.

The closure follows the collapse of other major Australian retailers in recent days and coincides with a slowing economy.

An economist says the negative impacts from successive interest rate rises this year are yet to be fully felt.

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, with higher interest rates and increased fuel costs most likely behind 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 fully work their way through the economy.

"While the growth p