A marketing expert has revealed the two main reasons why an iconic Australian footwear brand has been forced to close its doors after more than 100 years.

Wittner, which was established in 1912, has gone bust with the announcement on Wednesday sending shockwaves across the country.

The women’s shoe company has over 20 branded stores in Australia and New Zealand, and 25 stores within David Jones and Myer.

QUT marketing expert professor Gary Mortimer blamed the downfall on the cost-of-living crisis and the company’s inability to find a sweet spot between providing high-end products that were still affordable to the everyday shopper.

‘I think it’s about consumers that are now re-prioritising where they’re spending their money, making sure there’s enough to pay their rent or mortgage first,’ he told Daily Mail Australia.

‘Insurance, utilities, logistics – everything seems to be going up. There’s not much left over, and people are wondering, where do I put this money?’ 

Prof Mortimer added Aussies were more comfortable putting extra cash away for a rainy day as consumer confidence plummeted.

‘Unfortunately that apparel and footwear segment is very exposed to discretionary spending,’ he said. 

Prof Mortimer said Wittner occupied a challenging place in the market – between the profusion of ‘cheap and cheerful’ retailers, like Shein and Temu, and the luxury top-end.

‘Brands like Chanel and Burbury are well-established and insulated from the cost of living,’ Prof Mortimer said.

‘If you’re spending $700 to $800 on a pair of boots you’re not worried about paying rent. But that middle market is really challenged.’

Prof Mortimer said Wittner was not a luxury store, though it still offered higher-end, quality shoes.

He added its traditional customers were turning to a wide range of cheaper options, if they were spending their discretionary income on shoes at all.

‘It’s ultimately a very crowded market when it comes to clothing, footwear and accessories here in Australia,’ Prof Mortimer said. 

He explained that as household bills soar, businesses are being hit with those costs as well.

‘The big issue is the cost of doing business,’ Prof Mortimer said.

‘Rental, wage, electricity, insurance, and security costs are just eroding margins very, very quickly.’ 

Wittner is one of the more surprising casualties in a squeeze in Australia’s retail sector. 

Insolvency experts Sal Algeri and David Orr from Deloitte were appointed joint administrators on Wednesday.

Mr Algeri said the company will continue to trade as normal as they ‘conduct an urgent review of the group’s finances’.

A statement from Wittner said sales growth in the past 12 months couldn’t keep up with rising wages and rental costs. 

‘The growth in sales has been eroded by cost pressures from rising wages and occupancy costs, and more recently challenging trading conditions and supply-chain disruptions,’ it said.

‘We have invested in our range and teams over the last twelve months and remain committed to the Wittner business.

‘We will work closely with the administrators to achieve the best outcome for the business and its stakeholders.’

Wittner is the latest in a string of local fashion retailers which have shut up shop.

It comes after Jeanswest announced last month that all 87 stores across Australia would close their doors in the next six weeks, and up to 600 jobs would be axed.

Retail group Mosaic, which owns Australian chains including Rivers, Noni B and Katies, also collapsed last year owing creditors almost $250million.