The retail industry has changed dramatically in recent years. Rising operational costs, shifting consumer expectations, and the rapid expansion of e-commerce have placed significant pressure on traditional brick-and-mortar retailers.
As a result, even long-established brands have increasingly been forced to restructure, scale back, or exit the market entirely.
Now, many of the same pressures are beginning to weigh on digital-first brands that once appeared better equipped to navigate the modern retail landscape.
Founded in 2017, Kitri is a London-based direct-to-consumer (DTC) womenswear brand built around a digital-first business model. The company became known for producing limited-run collections and monthly product drops, positioning itself as a more sustainable alternative to fast fashion by avoiding overproduction and excess inventory.
Its no-middleman strategy was designed to offer trend-focused fashion at accessible prices. However, the same business model that initially helped fuel Kitri’s growth may also have made it more vulnerable to challenges now affecting much of the DTC sector.
Like many independent fashion brands, Kitri has faced mounting pressure from slowing consumer demand, rising operational costs, and increasing customer acquisition expenses.
Kitri announces permanent closure
Kitri has confirmed that it will permanently close “in the coming weeks” after nearly nine years in business.
“This decision has not come easily. We explored every possible avenue, but ultimately this felt like the only responsible path forward,” wrote Kitri founder Haeni Kim in a statement shared on Instagram.
As the business winds down, the company is encouraging customers to shop its remaining inventory on Kitri’s website, including archives and its final Spring Collection, which are currently being sold at discounts of up to 70% with free shipping on orders over £95, according to the website.
Delivery and returns will continue as normal during the closure process, and worldwide shipping remains available, as seen on its website’s shipping details.
What led to Kitri’s decline?
Kitri positioned itself as an ethically conscious independent label, working with manufacturing partners across the U.K., Europe, and Asia that aligned with its standards around safe working conditions, fair wages, and a zero-tolerance policy toward forced labor.
While operating independently gave the company greater control over its operations and product development, maintaining that structure can become increasingly difficult as brands attempt to scale without the financial backing of larger parent companies or fashion conglomerates.
“The challenges mainly come down to resources,” Jade Sarita Arnott, founder of Arnsdorf fashion label, told Harper’s Bazaar Australia. “Not having enough capital to grow and scale and create enough reach.”
Independent brands are no longer competing solely against one another, but also with global fashion groups, fast-fashion giants, and celebrity-backed labels with substantially larger marketing budgets and broader customer reach.
Kitri’s closure comes amid a broader wave of fashion and retail shutdowns, including several legacy apparel brands and luxury retailers that have closed stores or exited markets over the past year. Here’s some of my previous coverage of retail closures:
- Fashion brand shuts down website, all stores may close
- 115-year-old fashion brand exits entire market in 2026
- 170-year-old luxury fashion retailer quietly closes 21 stores
As conditions across the DTC sector have become more difficult, many digital-native brands have expanded into wholesale partnerships to unlock new audiences and diversify revenue streams.
Kitri pursued a similar strategy in late 2025 by joining Marks & Spencer’s platform Brands at M&S. However, it appears the partnership was insufficient to offset the wider financial and operational pressures facing the business.
Industry analysts say wholesale expansion can create both opportunities and challenges for independent brands. Wholesale pricing structures often require brands to sell products at 50% to 60% below retail value, while deposits typically cover only part of production costs.
This dynamic can create substantial cash flow strain for smaller, independent companies with limited financial flexibility.
At the same time, wholesale distribution can reduce a brand’s control over pricing, merchandising, and customer experience, all key elements that have historically helped DTC brands differentiate themselves in a crowded market.
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Kitri reflects wider pressures across fashion retail
Kitri’s closure reflects broader headwinds across the global fashion industry.
According to the McKinsey & Company State of Fashion 2026 Report, the global fashion industry is projected to grow only in the low single digits in 2026 as macroeconomic volatility, tariff pressures, and weaker consumer sentiment continue to weigh on demand.
Consumer expectations are also evolving rapidly, forcing brands to continuously adapt their product offerings, pricing strategies, and overall experience to remain competitive.
“DTC companies need to keep the faith in their business model,” Jump Associates CEO Dev Patnaik wrote on Forbes. “But they also need to understand how they can integrate better into the habits and rituals of mainstream consumers.”
For many DTC brands, that increasingly means integrating their products into consumers’ existing shopping behaviors rather than relying solely on digital-first differentiation.
E-commerce continues to expand rapidly. U.S. online retail spending reached approximately $1.34 trillion in 2024 and is projected to surpass $2.5 trillion in 2030, according to Capital One Shopping.
Despite that growth, physical retail still dominates the broader market.
Global retail sales reached an estimated $18.9 trillion in 2025, with around $14.4 trillion still generated through brick-and-mortar stores, according to Euromonitor research gathered by EY.
This is where Kitri faced a structural disadvantage.
Without a significant physical retail footprint, the company lacked an important channel that many competitors continue to leverage for brand visibility, customer acquisition, and long-term resilience.
However, even brands with physical retail footprints are reassessing expansion strategies as profitability pressures intensify. For example, Glossier recently confirmed plans to close nine of its 12 stores over the next two-and-a-half years, leaving only three locations open.
The move reflects a broader effort to streamline operations and refocus on long-term profitability. The company has framed the decision as part of a strategic reset to shift away from aggressive physical expansion toward a more selective, performance-driven retail strategy.
Kitri’s closure underscores a broader reality facing modern fashion retail. While digital-first models once promised a disruptive advantage, long-term survival increasingly depends on scale, diversified distribution, and the financial flexibility to adapt to a rapidly changing market.
Related: Mall retail giant closes final store in key city after 26 years
