Kathmandu and Rip Curl parent KMD to shut 21 stores in company shake-up

If you’ve been eyeing a new jacket from Kathmandu or chasing a Rip Curl wetsuit, don’t be surprised if your local store isn’t around for long. KMD Brands, the Aussie retail giant behind both, has announced it’s closing at least 21 stores across Australia and New Zealand as part of a major makeover.

The move is part of KMD’s freshly minted “Next Level” strategy, which CEO Brent Scrimshaw says is all about getting the business firing again.

“Since joining KMD Brands as Group CEO, I’ve spent time across each of our offices and regions, listening to our teams and retail partners whilst immersing myself in the business. What I’ve seen is clear: the potential of our brands is far greater than what we’re delivering today,” Scrimshaw told investors.

“That’s why we’re launching Next Level – a transformation strategy designed to align the Group behind a brand and product-led customer-centric growth agenda. Core to our strategy is a clear integrated marketplace vision for each of our brands that aligns consumer, product and store format in each geography.”

Closing some doors, opening new ideas

Not every store will disappear into the retail graveyard. While underperforming stores will be shuttered, others are getting a fresh lick of paint and a digital upgrade. Kathmandu is rolling out three new “concept stores of the future” in ANZ before Christmas, aiming to give shoppers a stronger brand experience and more interactive shopping.

The makeover is about more than the look and feel of stores. KMD is also investing in digital tools and data intelligence to make smarter, faster decisions and improve supply chains. Rip Curl, meanwhile, is setting up product “Centres of Excellence” in Torquay to speed up design and streamline operations.

The numbers behind the tough talk

It’s been a rough ride for KMD lately. Sales fell 0.5 per cent for the 10 months to May 2025, with Kathmandu down 1 per cent and Rip Curl up just 0.4 per cent. Shares have taken a hit too, sliding more than 50 per cent over the past year to just 22 cents.

Chairman David Kirk insists the business is undervalued and that the board has full confidence in the Next Level plan.

“We believe KMD Brands is 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. The Board is fully aligned behind the Next Level strategy and is confident in the Group’s ability to self-fund key initiatives and deliver increasing value for shareholders,” Kirk said.

What this means for retailers and shoppers

Rising costs, changing consumer habits and online shopping are forcing brands to rethink their footprints. KMD’s store closures might look scary to small businesses who are also struggling, but the brand’s smart investment in digital, store experience, and product innovation also points to a way forward.

“Next Level will sharpen the Group’s focus on key priorities already underway … building a stronger, more agile KMD Brands,” says Scrimshaw

In plain English? KMD is closing some stores, giving others a facelift, spending on digital smarts, and betting that a leaner, fitter business will keep shoppers happy and shareholders smiling. The big question is:  Will the ‘Next Level’ strategy lift KMD from the bargain bin and back into the retail spotlight?

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