The rise of Kmart as a childrenswear go-to, in conjunction with international entrants expanded offerings is the reason for Pumpkin Patch’s demise, according to the latest research from Roy Morgan.

With kids’-wear chain Pumpkin Patch going into receivership, the latest findings from Roy Morgan Research show that the number of people buying children’s clothing at the retailer’s Australian stores or online has been steadily declining for the past two years, even as kids’-wear shoppers at rivals Cotton On Kids and Kmart have increased.

According to Roy Morgan, Pumpkin Patch, like most retailers, has seen its customers ebb and flow over the years. In 2010 and 2014, its shopper traffic peaked at almost 220,000 people making at least one purchase there in an average four weeks, and its customer numbers consistently eclipsed those shopping at Cotton On Kids – until recently, when Cotton On Kids overtook it (133,000 vs 128,000 per average four weeks).

Meanwhile, the number of people shopping for children’s clothes at Kmart in an average four weeks has sky-rocketed since 2014, from 559,000 to 712,000. In fact, June 2014 marked something of a turning point for the discount department giant, marking its emergence from a two-year slump in kids’-wear customers.

But as the chart above indicates, Pumpkin Patch isn’t the only kids’-wear retailer to have lost customers in the past few years: Target, Big W and Best & Less have all lost ground too.

“The childrenswear sector is a very different place now than it was in 1990 when the New Zealand-owned Pumpkin Patch was established,” said Angela Smith, GM – consumer products, Roy Morgan Research. “Online shopping didn’t exist, and international players like H&M, ALDI and Zara were yet to disrupt the local market.

“These days, retailers are faced with a much more crowded and competitive landscape; it’s inevitable that not every business will thrive in these ever-changing conditions.”

The research firm said Pumpkin Patch shopper numbers do not appear to be dwindling because of any dissatisfaction with the store. On the contrary, the chain has scored consistently highly in the Roy Morgan Customer Satisfaction Awards for years, including taking out the Clothing Retailer of the Year in 2013.

The Kiwi brand has been among the category’s top three scorers almost every month since then, satisfying upwards of 90 per cent of its customers. (Target, Big W and Best & Less tend to score well too, around the mid-high 80s).

While international players like H&M, Uniqlo and Zara have already made a huge impact on adult fashion retail, they’re not yet dominant in the kids-wear scene. But their presence would undoubtedly be bothering smaller specialty chains like Pumpkin Patch: for example, in any given four weeks, some 35,000 Australians buy children’s clothing at Aldi, 15,000 buy it at Zara and 45,000 buy it from H&M. That’s 95,000 shoppers who might otherwise have been shopping at Pumpkin Patch.

“Besides the gradual influx of internationals, the main factor influencing Pumpkin Patch’s loss of customers, not to mention falling shopper numbers at Best & Less, Big W and Target, is almost certainly the dramatic rise of Kmart as a children’s-wear destination,” said Smith. “With its cheap-and-cheerful kids’-wear range and a series of vibrant, attention-grabbing TV ads promoting it, Kmart is successfully luring more and more shoppers away from the competition, not only Pumpkin Patch it should be added, with its fun, ‘fast-fashion’ approach.

“Renowned for its high-quality, long-lasting garments rather than its low prices, Pumpkin Patch’s premium approach may have served them extremely well in the past –and will always have its devotees – but sadly, in this increasingly high-turnover, budget-focused retail landscape, it lost its competitive edge.”