Footwear group Wittner on the block as tough retail conditions bite

Wittner sells its designer shoes from more than 60 locations, including department store David Jones. Picture: Richard Jupe

Wittner is the latest retailer to place itself up for sale, according to sources, amid a flurry of businesses hitting the market.

The sale of the footwear brand comes after rival Aquila, owned by the Longo family, was put up for sale last year, while WM Ritchie, the owner of brands such as Sandler, Easy Steps, Wide Steps and Jane Debster, is also understood to be on the block. WM Ritchie is run by Michael Madigan and Phil Butt.

When Aquila was up for sale last year, Melbourne-based Edison Partners was the adviser, and sources were pointing to the firm as the likely adviser for the Wittner process.

Some suspect that a logical acquirer of footwear companies on offer is Munro Footwear Group, the company behind brands such as Ziera, Mollini and Diana Ferrari.

Wittner was founded by HJ Wittner in 1912 in Melbourne and established the first mail order business.

The business sells its designer shoes from more than 60 locations, including department store David Jones, and is run by Catherine Williamson.

According to IBISWorld, the Australian footwear industry generates $4.8bn of revenue and $293m of profit annually, with an average profit margin of 6.1 per cent.

The research firm says logistics disruptions, higher wages and a weaker Australian dollar have weighed on profit margins, while clothing retailers have also increased their range of footwear, which has heightened competition, as has online retail.

But higher household disposable income is encouraging more footwear spending.

Accent Group has the industry’s largest market share with 27.5 per cent, followed by Munro Footwear with 8.4 per cent and Super Retail, which has Rebel sports shoes, with 7.7 per cent.

A number of other retail brands have hit the market in recent months amid a rising interest rate environment, including swimwear brand Seafolly and a stake in apparel chain Forever New, while menswear brands Oxford, Cambridge and Politix have been on offer.