Rip Curl Stores To Shut In Major Overhaul
A week after Rip Curl began downsizing its North American workforce, they’ve announced major changes in their Australian operations.
Yesterday, KMD, the parent company of both Rip Curl and Kathmandu, said they were undertaking “organisational restructure", part of which was shutting "at least" 21 stores across their network.
KMD hopes the move will shore up flagging sales and lift its falling share price. Shares hit a record low of $0.21 in late August, having fallen by half in the last year, and down from $2 when KMD bought Rip Curl in late 2019.
According to KMD, the store closures would not only reduce costs - they're hoping to free up $25 million - but figure in a shift towards online commerce. The focus was too improve the digital experience for customers.
“We are also accelerating our ecommerce platform rollout across our brands with investment in more effective digital marketing,” said Brett Scrimshaw, KMD’s chief executive.
While KMD will close down unprofitable stores, it will change the look of other stores. Its Kathmandu brand will launch concept “stores of the future” across Australia and New Zealand before Christmas.
KMD chairman David Kirk said the comapny was “materially undervalued” by the market.
“Over the last 18 months we have deliberately made significant executive team changes to enhance the core capabilities of the group,” Mr Kirk said. “The board is fully aligned...and is confident in the group’s ability to self-fund key initiatives and deliver increasing value for shareholders.”
It’s not yet known which Rip Curl stores will be targeted for closure.
Comments
improve the digital experience..? numpty's imo.. the only weapon we have against AI is people. Give it a few years and the trend will all go back to a physical connection.. we're seeing it sorta happening already aren't we..?? the thirst for a human experience
So much of life these days is straight out of brave new world. Let's hope John the savage wins in our version because I agree with your point. I believe we're losing our humanity and fast.
Where abouts?
I hope so.
Casuarina Beach will have to shut. Never see anyone in there.
What a load of corporate mumbo jumbo ! I get the feeling the major surf brands are just not cool anymore. They sold out long ago and are now paying the price. Support core brands that stand for something, not just shareholder dividends.
You'd have to think KMD was Ripcurl's Alan Bond.
KMD chairman David Kirk said the comapny was “materially undervalued” by the market.
Funny, that's what all the directors of dog shit companies on the ASX say. My boy Jesse Livermore however says "Markets are never wrong—opinions often are"
Cya later rip curl and the rest.
Do we even need any brands at all?
Everything is made in Asia- how long until I can just contact the Shieco Factory directly and order a 3/2 sealed suit in Yamamoto with no logos at all?
Why do I need this whole hulking middleman structure between me and that suit?
It doesn't add value, it only adds cost.
Already lots of goods can be purchased that way.
Agreed. I just want a wetsuit, and I am glad that part of that exchange no longer has to involve contributing to paying Steph Gilmore (lover her as I do) $500k a year + costs to go surfing in the tropics, let alone the corporates in the marketing department.
"gO WoKE Go bRoKe" kook comments in 3,2,1...
Every time I've walk past a fully stocked Rip Curl or Kathmandu store in a prime location with no one in it I've wondered how long it would be until the axe falls.
Picked up a Rip Curl water proof jacket yesterday at a 'surf shop' with price being dropped $100.
Great feeling jacket, and cheaper than equivalent at Kmart....
Not good sign for Rip Curl though....
I haven’t stepped inside an actual surf shop for ages. Order boards direct from my favourite shaper. Get wetsuits and any accessories online. Are they really necessary?
Wax...
Oh na - servo for that...
Corporate Dribble. These surf companies are dead and buried ! By idiots who wouldnt know a right hander from a left hander are paying millions for these Surf Skeletons, thats all they are now !
No one wants to wear the brands !! Full stop ! And they continue to pump money into surfers who are well past their time, instead of young up and coming talent ! Its just dumb shit ! And if you go out and pay $100 for boardshorts and $80 for t shirts and think walking around with those ancient brand names on your clothing actually says and means something, well you are right ! It means you are a Dickhead too ! These companies are not even a shadow of what they originally were.