City Chic Sees Full-Price Sales Lift
The Australian fashion retailer expects to return to positive first-half EBIT after a 19.6% rise in comparable full-price store sales across Australia and New Zealand.
Updated on Nov. 4, 2026 in Retail
Live Poll
Do you think retailers cutting discounts is good for shoppers?
City Chic Collective reported a 19.6% rise in comparable full-price store sales across Australia and New Zealand in the 18 weeks to 1 November 2026. Group revenue excluding discontinued wholesale operations fell 1.7% over the same period.
Why it matters
The retailer attributes the stronger full-price performance to a shift away from promotional discounting, which lifted gross margins. The company expects to finish the first half of FY27 with a positive cash balance and no drawn debt.
Trading gross margin dollars rose 2.2% and total store revenue rose 7.5% despite seven fewer stores than a year earlier, while comparable sales in the US fell 12.0%. A $10 million debt facility remains available until 31 March 2028.
The players
City Chic Collective
An Australian fashion retailer operating stores across Australia, New Zealand and the United States.
The details
City Chic closed four stores after June and opened a new outlet at Rouse Hill Town Centre in October. The retailer credits changes to product quality, assortment and price points for the stronger store performance.
Timeline
June: City Chic closed four stores after this month.
August: A planned reduction in promotional activity for online sales takes effect.
October: A new outlet opened at Rouse Hill Town Centre.
1 November 2026: The 18-week reporting period ended.
Market Landscape
City Chic's move away from promotional discounting reflects a broader retail pattern of protecting margins by prioritising full-price sales. Its US comparable sales decline of 12.0% contrasts with the stronger Australian and New Zealand store performance, showing regional divergence in the same strategy.
Shoppers may find fewer promotional sales at City Chic as the retailer focuses on full-price product, with discounting reduced from August. Online buyers in Australia and New Zealand may notice fewer promotions following the planned reduction in online promotional activity.
The takeaway
Retailers that cut back on discounting can rebuild margins, but the effect can vary by market and channel. Readers tracking the sector can watch whether full-price sales growth holds through the first half of FY27.
What happens next
The retailer expects to finish the first half of FY27 with a positive cash balance and no drawn debt, and to return to positive first-half EBIT.
Further reading
Explore more Australia Retail coverage for context on the sector.
Source note: This article includes information reported by Small Caps.
Live Poll
Do you think retailers cutting discounts is good for shoppers?
