Lincraft to Close Physical Stores After 80 Years of Operation

Specialty craft retailer Lincraft has announced the closure of its remaining physical stores across New Zealand and Australia, ending an 80-year legacy in brick-and-mortar retail, according to The Press and Nine.com.au. The decision affects more than 50 locations, with the company citing shifting consumer behavior and financial pressures as key factors.

Background on Lincraft

Founded in 1943, Lincraft became a household name in Australia and New Zealand for its craft supplies, home goods, and DIY products. The retailer expanded to 120 stores at its peak but has gradually reduced its physical footprint in recent years. A statement from the company’s CEO, Sarah Mitchell, cited “sustained challenges in the retail sector” and “evolving customer preferences” as reasons for the closures. “We are committed to supporting our customers through digital channels, but the financial viability of our physical stores has become untenable,” Mitchell said in a press release.

Reasons for Closure

Industry analysts point to broader trends in retail, including the rise of e-commerce and reduced foot traffic in physical stores. According to a 2023 report by Deloitte, specialty retailers like Lincraft have faced “heightened competition from online platforms and discounters.” The company’s 2022 financial filings also revealed a 12% decline in revenue compared to the previous year, though it attributed the drop to supply chain disruptions rather than long-term structural issues.

Impact on Employees and Customers

The closures will affect approximately 800 employees, with some transitioning to roles in the company’s online division. Lincraft has partnered with local employment agencies to assist affected workers, according to ABC News. Customers have expressed mixed reactions, with some praising the company’s “adaptation to modern shopping habits” and others lamenting the loss of a “local institution.”

Future Outlook

Lincraft plans to focus on its online platform and wholesale operations, which have seen a 20% year-over-year growth. The company has also announced partnerships with major e-commerce retailers to expand its digital reach. However, the move has raised questions about the future of physical retail in the region. “This reflects a broader shift in how consumers engage with specialty brands,” said retail analyst James Wong. “But it also highlights the challenges of sustaining legacy businesses in a digital-first economy.”

For now, Lincraft’s remaining stores will continue operating until the end of the year, with final closures scheduled for December 2024. The company has not yet commented on potential store reopenings or new market expansions.

The Press | Nine.com.au | Australian Broadcasting Corporation | News.com.au