“You can look a million dollars all the time!” the Australia Women’s Weekly advertisement reads.

“Relaxed styles, easy flair — plus a real talent for finding the individual designs just right for a stunning winter.”

Next to the advertisement, two smiling women are pictured with big hair, knee-length skirts and oversized pussy-bows adorning their necks.

They carry purses, to make clear the collection is for the working woman.

The advertisement, from 1978, is for Katies Clothing Store.

On Tuesday, it was announced the Australian brand would be closing its stores for good.

An Australian icon

Katies Clothing opened its first store in Rundle Street Mall in Adelaide in 1954.

At the time, it was billed as “offering good quality women’s fashion at a very affordable price”.

The outfits ranged from $14 for a skirt with pockets, to $24 for a cardigan.

Factoring in inflation, the skirt would now cost a shopper $85.

The cardigan, $147.15.

Katies brand owner, Australian fashion empire Mosaic Brands, went into administration in October owing creditors $249 million.

Mosaic has since announced it will be shuttering 80 Katies stores by January, and an additional 80 stores across the Rivers, Millers and Noni B brands.

The closures are expected to impact 480 employees across all brands.

KPMG were appointed to review the business, and issued a statement about the decision to close Katies.

“Since the date of appointment, the receivers and managers have stabilised operations, continuing to trade the businesses of the group while engaging with suppliers to release stock for the crucial Black Friday and Christmas trading periods,” the statement said.

“The decision was made following a review of the performance of Katies as a brand, and the wider store network.

A post-mortem

“My sister [wore] an early seventies Katie’s blouse as a new graduate school teacher, and still looks great after hundreds of washes,” one woman said on social media.

“This was my go-to shop in the 1970s — not now, just cheap quality clothes,” another said.

RMIT fashion industries expert Dr Carol Tan said the writing had been on the wall for some time.

“It was only a matter of time,” she said.

“Katies … faced severe challenges leading to its downfall.

“Some key factors contributing to its financial troubles include the COVID-19 pandemic.

“Given their number of bricks-and-mortar stores, they were severely affected by lockdowns and restrictions, as they had to close their physical stores for extended periods, this impacted sales and cash flow.”

But Dr Tan said problems had been emerging long before then.

“Even pre-pandemic, there was already declining foot traffic,” she said.

“Mosaic’s reliance on physical stores and its slow transition to e-commerce made it vulnerable.

“Consumers shifted toward online shopping, but Mosaic struggled to adapt its operations accordingly.

“They also faced competition from online-only retailers, which often offered better pricing and more flexible shopping experiences.”

Dr Tan said the rise of ultra-fast fashion brands such as Shein and Temu had also put a dent in sales.

“Mosaic Brands, which primarily targets women over 50, faced challenges in differentiating itself and attracting younger customers,” she said.

“This has diluted customer loyalty and hindered individual brand growth.”