Traditional fashion house Jones closes branches: over 100 jobs in danger!

Traditional fashion house Jones closes branches: over 100 jobs in danger!

Wiener Landstraße, Österreich - The Austrian fashion retailer Jones today announced that the company will close its 30 branches after more than 50 years. This decision not only makes the main branch on Wiener Landstrasse, but also affects all other shops that Jones operates in four countries and over 100 concession points in the upscale specialist trade. Gabor Rose, owner and managing director of the traditional company, mentions changed consumption habits and drastic cost increases as the main reasons for the closures.

The closures were accompanied by massive austerity measures, but these were not sufficient to secure the continued existence of the company. Around 110 employees have already received information about the upcoming measures, which underlines the sad reality of this company decision. Rose emphasized that the existing franchise contracts are dissolved and the inventory is reduced by a sale from April.

Perspectives of the takeover and workplace maintenance

Although the closures have consequences for the employees, there is a little ray of hope: three international brands have expressed interest in taking over the existing Jones business. This could ensure up to 80 jobs. In addition, the headquarters on Wiener Landstrasse and the online shop will continue to be operated until summer to ensure smooth transition.

Doris Rose, head of design at Jones, thanked the team in an emotional message and customers for their years of loyalty. The company's closure marks the end of an era and illustrates the challenges with which the inpatient fashion trade is faced.

changes in shopping behavior

The closure of Jones also reflects the changes in shopping behavior. According to a study by the Gallup Institute, which was carried out on behalf of the Federal Gremium Handel with fashion and leisure items of the Chamber of Commerce, the Austrians have been buying less frequently in shops since the pandemic. The proportion of online orders has increased significantly, while at the same time dissatisfaction with Asian online portals in terms of quality and service is increasing.

In the past 12 months, 38% of clothing has been bought in stationary trade, 16% online and 40% in both shops and online. This data illustrates that consumers are increasingly accepting hybrid shopping models, especially in the area of ​​clothing, fashion and shoes. The frequency of business has also decreased; In 2018, 71% of the respondents bought several times a month or at least once a quarter, while this share has dropped to 61% by 2024.

In a changing trading landscape, the Federal committee calls for fair competitive conditions and the abolition of the 150 euro duty -free limit to strengthen the domestic trading market and prevent job losses. The closure of Jones is another signal that underlines the challenges of traditional retail in a digital world.