Australian craft retailer Lincraft has announced it will close all of its remaining physical stores, bringing an end to more than eight decades of shopfront operations and marking another significant change in Australia's retail landscape.

The company revealed on Tuesday that it would transition completely to an online business model, citing the growing challenges faced by traditional retailers. Approximately 300 employees are expected to be affected by the decision, although Lincraft has assured staff that all employment entitlements will be honoured throughout the closure process.

Lincraft currently operates 28 stores, primarily located across Australia's eastern states and territories. These outlets will progressively close over the coming months as the company winds down its in-store operations. Despite the closure of its physical locations, the retailer intends to continue serving customers through its digital platform.

In a statement announcing the decision, the company pointed to a combination of factors that contributed to the move. These included changing consumer shopping habits, rising operating expenses, and increasing competition from low-cost international online retailers. The shift reflects broader changes occurring across the Australian retail sector as businesses adapt to consumers increasingly choosing the convenience of online shopping.

Lincraft's history stretches back to 1938, when it first began as a market stall in Melbourne. Over the decades, it grew into one of Australia's most recognisable destinations for fabrics, sewing supplies, craft materials, homewares and knitting products. In 2005, the business was acquired by its current owners, John Maguire and Brian Swersky, operating under the name Lincraft Australia.

Lincraft chairman John Maguire described the decision as one of the most difficult in the company's history.

"Lincraft has been part of Australian and New Zealand communities for generations," Mr Maguire said.

"A sad day for our team members and customers alike. Our priority is to support our team members through this transition and to communicate with them as clearly and respectfully as possible."

The closure highlights the ongoing pressures confronting many established Australian retailers. Businesses that once relied heavily on foot traffic are increasingly reassessing their strategies as customers embrace online purchasing and seek competitive pricing from both domestic and international sellers.

Lincraft is not alone in making this transition. Earlier in 2026, Barbecues Galore announced plans to close more than 60 company-owned stores, affecting around 500 employees, while retaining some franchise-operated outlets. Similarly, Mosaic Brands Group, the parent company of fashion chains including Millers, Noni B, Katies and Rivers, previously announced the closure of all its brands and stores, impacting thousands of workers across Australia and New Zealand.

For many Australians, Lincraft has been more than just a retailer. For generations of sewers, knitters, quilters and craft enthusiasts, its stores represented a place of creativity, inspiration and community. As the company prepares to close its doors permanently, it marks the end of an era for one of the country's most iconic craft retailers.