Carvela opened a dedicated Australian e-commerce platform and outlined plans for standalone physical stores after department store chain David Jones entered receivership, cutting the brand’s sole wholesale channel in the country.
The footwear and accessories label, which sold exclusively through David Jones locally, shifted distribution directly to consumers just days after administrators announced the closure of 19 of the department store’s 38 branches.
Wholesale Collapse Forces Direct Retail
Steve Madden acquired Carvela’s parent company, the Kurt Geiger group, last year and assigned its Australian operations to Charlene Perera, general manager of Steve Madden Australia. Perera will run the local Carvela business, overseeing fulfillment, online sales and subsequent lease acquisitions.
Carvela’s Australian operation holds inventory locally and offers free shipping on orders above $170, alongside free returns. The product catalogue covers sandals, heels, flats, sneakers, bridal shoes and handbags, with matched sets intended to raise order values.
“Going ecommerce first means we hold full control of the brand experience from day one and we read the market in real time,” said Perera. “Every order tells us something about where our customer lives and what she’s buying. That’s how we’ll choose our store locations.”
Data-Driven Site Selection
Ross Warden, chief retail officer for Carvela Global, pointed to the company’s dual-channel network in the United Kingdom as the template for Australia. The brand plans to mine online basket data and customer postal codes to pinpoint sites for its upcoming standalone store rollout.
By treating the initial digital launch as a mapping tool, Steve Madden reduces the risk of committing to expensive leases in sub-optimal metropolitan centres. Footwear brands shifting away from concession models typically face high customer acquisition costs online, but local order data gives leasing teams clear foot-traffic targets before signing retail contracts.
Department store concessions historically absorbed store-fit capital, retail staffing and customer footfall generation in exchange for margin splits. Replacing that wholesale volume requires Steve Madden to build brand awareness independently while funding prime retail leases.
Replacing the Wholesale Footprint
For Australian shopping centre landlords, the entry of international single-brand operators provides partial relief as anchor department stores shrink their footprints. Yet standalone footwear boutiques operate on tighter inventory margins than multi-category anchors, making rent negotiations critical.
The disruption stems from the collapse of 188-year-old David Jones, which appointed administrators and receivers last week. Receivers immediately scheduled the closure of half its retail network, stranding wholesale partners that relied on the chain’s central business district and suburban flagships.
Perera’s team is now reviewing initial checkout metrics from the newly launched carvela.au site to finalise the location and timing of the brand’s first brick-and-mortar storefront in Australia.
