Lincraft Goes Online Only
Craft Retailer Lincraft Shutters All Australia, New Zealand Stores After 80 Years, Moving Online
Key Points
Lincraft CEO Sarah Mitchell said the closures reflect that while the business is “committed to supporting our customers through digital channels,” “the financial viability of our physical stores has become untenable,” citing “sustained challenges in the retail sector” and “evolving customer preferences.”
Lincraft expected the closures to affect around 800 employees, with “some transitioning to roles in the company’s online division,” and said it had partnered with local employment agencies to assist affected workers (per reporting citing ABC News).
The company said stores would close progressively, with plans to close the “majority within six months,” while it keeps the online store operating throughout the transition.
John Maguire described the impact on staff in personal terms, saying: “A sad day for our team members and customers alike. Our priority is to support our team members through this transition and to communicate with them as clearly and respectfully as possible.”
Industry context cited in coverage pointed to pressure on specialty retailers: a 2023 Deloitte report warned of “heightened competition from online platforms and discounters,” and Lincraft’s 2022 filings showed revenue down 12% year-on-year (with the company attributing the decline to supply-chain disruptions rather than longer-term structural issues).
Lincraft, one of Australia and New Zealand's last major craft and fabric retailers, will close all 30 of its remaining physical stores after more than 80 years of trading. CEO Sarah Mitchell said the closures come because "the financial viability of our physical stores has become untenable," citing rising costs and shifting shopper habits. The move puts around 800 jobs at risk, according to ABC News.
The company, founded as a Melbourne market stall in 1938, plans to shut the majority of its stores by December 2026. It will continue to trade online. The 30 stores span 24 locations in Australia and six in New Zealand, according to ABC News.
Decades of Pressure Finally Force the Doors Shut
Lincraft's troubles did not start overnight. The company entered receivership as far back as 2005 after a slump in sales, before owners John Maguire and Brian Swersky took over and restructured the business, according to Inside Retail Australia. In 2016, it tried again with a compact store format it called "Lincraft Essentials" to fight what it described as a "hostile market."
Financial filings from 2022 showed revenue fell 12% year on year. Lincraft blamed post-pandemic supply-chain disruptions at the time. But analysts say the deeper problem was structural. A 2023 Deloitte report warned that specialty retailers faced "heightened competition from online platforms and discounters" — a pressure Lincraft could not escape, according to Queanbeyan CityNews.
800 Workers Face Redundancy as Stores Wind Down
Around 800 employees will be affected by the closures, ABC News reported. Lincraft said some staff will move into roles within its online division. For the rest, the company says it has partnered with local employment agencies to help workers find new jobs. Managing Director John Maguire called it a "sad day for our team members and customers alike."
Stores will close progressively over the coming months, with the majority expected to shut by December 2026. Lincraft first told its "Lincraft Club" loyalty members via email on the morning of June 16, 2026, before making the announcement public that afternoon, according to 7NEWS.
Cheap Online Rivals Undercut the Traditional Craft Shop
The rise of global low-cost platforms like Temu and Shein has squeezed margins for physical craft stores. These sellers can offer fabric and craft supplies at prices that a store with rent, staff, and utilities simply cannot match. Lincraft's estimated online revenue was just US$10 million in 2025 — a small base on which to rebuild the entire business, according to ECDB.
Industry observers often contrast Lincraft with rival Spotlight, which owns many of its store sites and has bundled them into large "mega-centres" alongside brands like Anaconda. That model created a destination-shopping draw that Lincraft's standalone stores could not replicate. Lincraft's physical network simply had nowhere left to hide.
Small Towns and Empty Shops Left Behind
The closures will hit regional communities hard. In New Zealand, towns like Thames, Taupō, and Dunedin will lose major retail anchors, which could reduce foot traffic for nearby small businesses, according to 1News. Real estate experts warn the vacant sites may put "pressure on rental yields" in secondary shopping strips, according to Real Commercial.
Lincraft's exit is part of a wider wave of closures hitting mid-tier retail in Australia. Mosaic Brands — owner of Noni B and Katies — announced its own mass store shutdowns in October 2024, according to Queanbeyan CityNews. For many shoppers, Lincraft's closure marks the end of a 88-year institution that started as a single market stall and grew into a household name for crafters across two countries.
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