Shock for fashion fans: Jones closes 30 branches in Austria!

Shock for fashion fans: Jones closes 30 branches in Austria!

Wien-Landstraße, Österreich - The Viennese fashion retailer Jones has announced today that all 30 branches will be closed by the end of June 2025. This is part of a comprehensive withdrawal from more than 100 specialist trading locations, which directly affects 110 employees. Of these, 80 employees have already found alternative jobs. The company headquarters in Vienna-Landstrasse and the web shop will also stop their activities until summer, which indicates the continuing difficulties in retail. Company boss Gabor Rose said that despite the austerity measures taken, no sustainable solution could simply be found.

The increase in sales that would have been necessary to cover the operating costs is 10 to 15 percent annually. In view of this challenge and the intensifying competitive conditions, Jones decided to dissolve ten franchise agreements. A sale of the existing collections started in April to reduce the remaining stocks.

precarious location in textile trade

The textile industry is in a comprehensive consolidation process. For example, the Label Palmer recently announced the closure of 36 sales outlets, which falls victim to 117 employees. This change is a direct reaction to the decline in sales and the challenges with which the industry is faced. Many of these retail changes have profound effects because experts expect a general reduction in space of around 50 to 70 percent in many trading formats, especially for department stores. This assessment is also underlined in the KPMG report on the future of the fashion industry, which emphasizes the need for attractive and lively inner cities for a successful shopping experience.

The search for new operators for the prestigious shops, such as the location at the Graben in Vienna, is already running. However, there are numerous immobile challenges. So three different fashion brands have also expressed interest in the business premises, apart from four locations that remain empty.

The future of the fashion industry

Despite the online trade, which has experienced a boom in recent years, stationary trade still remains the preferred purchasing option for many consumers. However, experts emphasize that the success of retail requires a comprehensive cooperation of all local actors and conceptual urban development. Only in this way can the inner cities continue to be attractive for customers as an attraction.

Currently, the financing of Jones's operational business is secured, but it remains to be seen how the situation will develop in the coming months. The challenges are great and the answers to the questions that the textile market raises are becoming increasingly urgent. The shock that Jones has caused could only be the beginning of far -reaching changes in the fashion industry.

For detailed information about the effects of the closures on the industry, Kosmo and kpmg