Universal Store cashes in on the return of consumer confidence

Youth fashion retailer Universal Store is cashing in on a wave of 1990s-inspired nostalgia for casual clothing, just don’t expect it to resort to discounting to attract more buyers.

Universal Store chief executive Alice Barbery at the retailer’s shop at Chermside in Brisbane.

With fashion, it’s a matter of what goes around comes around.

And for youth casual clothing retailer Universal Store, what was popular during the 1990s is again flying off the shelves.

Chief executive Alice Barbery said keeping up with the latest fashion trends was part of its “customer obsession” creed.

“You can’t get caught up in ego about what you think your brand should be. It’s about understanding what the customer wants (and) what do they need?” she said.

“You have to be aware of the trends and if you give more attention to the customer you will meet those trends at the right time.”

Universal Store’s latest fashion trend harks back to the 1990s’ low-maintenance casual chic clothing such as T-shirts, jeans, hoodies and sneakers.

“We’re selling something called jorts – these denim shorts are flying out the door. We’re finding 1990s-inspired products have become a big trend,” Ms Barbery said.

“T-shirts brands like Neo Vision, Front Running and Thrills are doing well for us. Worship is another band that does denim shorts and we’re very happy with our Common Need and Perfect Stranger brands.

“One of the benefits of being in Australia is that a lot of trends kick off in the northern hemisphere. Back in the day you used to have to get on a plane to see these things but now with Instagram and Tik Tok the speed that trends come on and off on is probably our biggest challenge.”

Despite cost of living difficulties and although challenging, retail is relatively stable. Australian Bureau of Statistics figures released on Wednesday show retail turnover for November increased 3 per cent on a year-on-year comparison, when $37bn was spent.

The clothing, footwear and accessories subgroup in November recorded a 1.8 per cent increase in spending to $3.07bn compared with the same month in 2023.

Universal Store was founded in 1999 by brothers Greg and Michael Josephson. It was purchased by private equity investors in 2018 before going public on the ASX in 2020.

Despite a tough trading environment in 2024, Brisbane-based Universal Store Holdings reported group revenue of $289m, which was 9.7 per cent higher than the previous 12 months, and an underlying profit after income tax of $30.2m that was 18 per cent higher than the previous 12 months.

In an October update to the ASX, the retailer said that in the first 17 weeks of the 2025 financial year the group reported a 19.3 per cent rise in direct-to-customer sales, compared with the previous corresponding period, while total sales were up 15.5 per cent.

At the end the 2024 financial year there were 80 Universal Stores, eight Perfect Stranger stores and 10 Thrills stores around Australia. The retailer reported in an update that its store rollout was on track for seven new ones to be opened before Christmas.

Ms Barbery said Universal Store’s performance in the first half of the 2024 financial year was subdued but, with a return of consumer confidence, its results were far better in the second half.

Universal shares have risen by 71.5 per cent over the past six months. On Friday they closed flat at $8.40.

A Universal Store in the Brisbane CBD.

Ms Barbery said the company was committed to an omnichannel operation, a business strategy which aims to provide a seamless shopping experience across all channels – in store, mobile and online.

However, Ms Barbery said while it achieved record sales on Black Friday and Cyber Monday, which will be in the December ABS figures, the company was not offering rolling discounts.

“Black Friday and Cyber Monday have come and gone for us and they were just a day. It’s not a week. It’s not a month. It doesn’t start in early November and end in February – it’s a day,” she said.

“If retailers do this rampant discounting, it’s incredibly hard to unwind. I think it’s a huge mistake and one that we try and avoid. Once you train your customers that if they wait long enough prices will drop in four weeks then they will wait.

“They will feel cheated if they pay the full price.”

Ms Barbery said it was a mistake to think that price was the only determining factor in purchasing decisions.

“Exclusivity is really important you we want to compete on the products people want as opposed to the price,” she said.

“If you’re selling a like-for-like item that is being sold by four or five other retailers you are stuck for price.

“If you have, like we have, a lot of exclusive products then it really comes down to the consumer deciding what they perceive as value and a better product.”

Originally published as Universal Store cashes in on the return of consumer confidence