It was a modern-day success story, an idea sparked by Beatlemania that became deeply woven into the fabric of Australia's identity.
asserted
that → spark → identity
Long a cornerstone of Australian fashion, Cue repeatedly reinvented itself to outlast the times, with the proof hanging in the wardrobes of generations of women.
asserted
proof → reinvent → women
It's success was a far cry from its humble beginnings as a business that started by selling T-shirts.
asserted
that → start → shirts
Now, Cue and sister label Veronika Maine have become the latest casualties in Australian retail, with a team of experts last week rallying in an effort to stop the company from being consigned to history.
But what inspired the start of the clothing brand in 1968 ultimately became its downfall.
asserted
inspired → become → 1968
It was during a holiday to London in 1964 that Rod Levis, a young Australian law student, found himself swept up by the youth culture that was taking England by storm.
asserted
that → find → storm
Levis knew nothing about fashion but saw an opportunity for an Australian brand to sell clothing that appealed to young people.
asserted
that → know → people
He opened Levis's in Sydney's Strand Arcade, selling clothes that capitalised on the popularity of The Beatles and stocking items created by cutting-edge designers.
asserted
that → open → designers
The success of the business allowed Levis to expand into designing and manufacturing, and he launched Cue in 1968.
asserted
he → allow → 1968
"Back then the clothing choices were mumsy and dowdy or too sophisticated," Levis told Marie Claire in 2018.
"Cue made way for a new wave of young fashion inspired by what was going on in London and Paris.
asserted
what → tell → London
"The name says it all: it means to be on target, on the ball, ready for the next thing."
By the 1970s, Cue was stocked in Myer stores across Australia and the company began opening standalone stores as demand grew.
The 1980s was transformative for Cue, with the brand creating its signature tailored suits that became a staple for working women.
asserted
that → say → women
Supermodel Claudia Schiffer became the face of its 1997 campaign, and in 1998 the more contemporary brand, Veronika Maine, was launched.
asserted
brand → become → 1998
When the new millennium arrived the company had fully cemented itself as an Australian fashion juggernaut, with stores around the country and its clothes stocked by both Myer and David Jones.
But wholesale was a key area for the company too, and the popularity of the brands was so great that it allowed Kristen Tassone to start her own business onselling the clothes 26 years ago.
asserted
Tassone → arrive → clothes
"They were the biggest brands on a wholesale level," she recalled.
asserted
she → recall → level
"They knew what they were doing.
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they → know → what
It was quality craftsmanship, it was super commercial price points and really comprehensive collections that people enjoyed.
asserted
people → enjoy → that
They were just a really iconic company to work with, and it shaped the rest of my 26 years and counting in the fashion wholesale industry."
asserted
it → work → industry
Tassone spent 10 years selling Cue and Veronika Maine to her clients before the company shifted its focus to direct-to-consumer channels.
asserted
company → spend → channels
"It was greatly missed when they pulled back from wholesale," she said.
asserted
she → miss → wholesale
"I'm just really grateful that I was able to start a successful business with Cue and Veronika Maine as my kickstart."
asserted
I → start → kickstart
The Cue and Veronika Maine labels were removed from wholesaling entirely by 2008, before the economic shockwaves of the Global Financial Crisis rippled through Australia's retail sector as consumer spending plummeted.
asserted
spending → remove → sector
It took years for confidence to return to the retail sector, and when it did, it coincided with the rise of online shopping, fast fashion, and more competition.
asserted
it → take → shopping
By 2017, Marcs and David Lawrence — two of Cue's direct competitors — had collapsed, before being purchased by Myer.
asserted
Marcs → collapse → Myer
Australian luxury retailer Oroton went bust later that same year but was rescued at the last minute by major shareholder Will Vicars.
asserted
Oroton → go → Vicars
In November 2018, Cue marked 50 years in business, and the following year announced an exhibition at the Powerhouse Museum in Sydney.
asserted
Cue → mark → Sydney
But within months of it opening, the COVID-19 pandemic hit.
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pandemic → open → months
The pandemic fundamentally changed Australian retail.
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pandemic → change → retail
The rise of working from home saw people swapping corporate for comfort, a reliance on online shopping, and more competition from retailers overseas — particularly on price.
asserted
people → work → price
When people did return to the office, they favoured a more casual approach to workwear and that, along with cost-of-living pressures restricting consumer spending, and a lack of aspirational brand identity curated on social media, created a perfect storm that Cue and Veronika Maine could not navigate.
uncertain
Cue → return → that
For a company that was once at the forefront of what consumers wanted, the labels had lost their way.
asserted
labels → want → way
It's a scenario that seasoned retail analyst and restructure expert James Stewart has seen play out repeatedly during his 40 years in the industry.
asserted
Stewart → see → industry
"The single biggest reason, in my view, that mid-market apparel brands end up in trouble is because of the product, because they end up losing touch with their target market, and their target market just doesn't see their product proposition at their price points as value anymore," he said.
asserted
he → end → value
"When you lose relevance to your target customer, then they start shopping somewhere else.
asserted
they → lose → customer
"You can blame it on Shein, you can blame it on the resale market, you can blame it on consumer sentiment, all of which will have some impact … but at its core, what's in your control is product, range architecture, price point, and brand proposition.
asserted
's → blame → control
Every apparel retailer that I've dealt with, almost all of them have had exactly the same problem.
asserted
all → deal → problem
They lose relevance.
asserted
They → lose → relevance
"Your job as a retailer is to read your target market and pivot your product proposition accordingly."
asserted
job → read → proposition
Levis's son Justin had tried to do just that as the executive director of Cue and Veronika Maine, until his departure in 2024.
asserted
Justin → try → 2024
Two weeks after his exit, the eponymous label of young Australian designer Dion Lee collapsed.
asserted
label → collapse → Lee
Cue had acquired a stake in 2013.
asserted
Cue → acquire → 2013
Lee's brand has since been acquired by US retail group Revolve.
asserted
brand → acquire → Revolve
…and 25 more, not listed.
The Aporia
