ublic listing highlights the growing emphasis on resilience over velocity.  In a climate shaped by shifting trade policies, inflationary pressures and supply chain disruptions, retail brands are rethinking their growth ambitions and placing greater weight on operational efficiency, brand differentiation and long-term sustainability. Rather than chasing liquidity events, many are choosing to consolidate, refine and build models capable of withstanding external challenges.  Koala may be one of the more visible examples, but it’s not alone. Across the industry, retailers are increasingly opting to grow with intention and rewriting the playbook for global expansion in a volatile era. Koala’s decision to step back from listing comes as fellow furniture retailer Ecosa pushes confidently into its next growth phase. Known for its viral sofa beds and ergonomic sleep products, Ecosa has spent the past decade scaling online, reporting a 32 per cent average year-on-year growth rate.  Last year alone, Ecosa said it sold more than 43,000 mattresses and 40,000 pillows. Now, in a new shift, the B-Corp certified business is expanding offline and launching its first three bricks-and-mortar stores across Geelong, Perth and Nunawading.  Ecosa’s move is calculated and signals not just confidence in the brand’s retail appeal, but a broader diversification strategy that combines e-commerce with physical retail amalgamation. As IPOs become less of a clear objective, Ecosa is also demonstrating that profitable, sustainable growth doesn’t need to follow the conventional listing path. Retail strategy at a crossroads Koala’s story has always been one of brand identity, a bold tone of voice and a values-led approach to sustainability and product innovation.  Starting with a single mattress, the brand has since expanded into a wide range of furniture products, with significant growth in key international markets, namely in the US. The company’s decision to pause its IPO suggests it wasn’t just about timing and looming tariffs but possibly a broader rethink of how to scale retail operations in an unpredictable world. Koala remains profitable and cash generative and continues to optimise its supply chain, launch new SKUs and strengthen its presence across Australia, Japan and the US, where trade and tariff risks are evident. However, it is facing a market with fresh challenges. Temple & Webster, an early mover in Australia’s online furniture market, listed in 2015, the same year Koala launched, with a $61.5 million IPO.  Temple & Webster benefited from scaling at a time when digital acquisition was cheaper and competition lighter. Now, the landscape is tougher with advertising costs higher, customer behaviour harder to predict and sharper margins required to scale.  In that light, Koala’s IPO pause reflects a more cautious approach driven by context. The investor view Andy Hough of Pitcher Partners offered insight into the investor sentiment shaping these strategic decisions and discussed what investors are prioritising now – growth at all costs or margin and profitability. “We’ve definitely seen a shift over the last few years,” Hough told Inside Retail. “Previously, revenue growth was a key focus area, and while this is still vitally important, investors want to see improved and sustainable profitability while also focusing on optimising cash flow,” he added.  Hough reinforced that unless underpinned by genuine technology, most business models face a reality where direct costs scale proportionally with revenue.  While modest efficiencies may emerge through operating leverage as companies grow, the notion of pursuing growth at all costs could be viewed as unsustainable, particularly in a climate where profitability is under sharper investor scrutiny. Sustainable growth without public listing may still be a viable path; however, given the current capital market conditions and rising investor caution, the outlook for Australian DTC retailers will depend on financing options. “Koala is on its way to becoming an iconic Aussie consumer brand. It has successfully expanded its product offering and simultaneously penetrated key overseas markets, principally the US, which now accounts for approximately 30 per cent of total sales,” Hough said. “Although an IPO is off the table for the foreseeable future, there are a number of other financing options available, including sourcing additional funds from the existing shareholder base,” he added.  Koala’s decision to pause its IPO reflects a broader cooling of the Australian public markets, influenced by a mix of external and structural pressures.  “The IPO market in Australia has been subdued for a number of years,” Hough recalled. “While the uncertainty around tariffs in the US undoubtedly played a part in Koala’s decision to postpone the IPO, I would suggest it was the final nail in the coffin as opposed to the only factor which influenced their decision.”  Hough points to broader geopolitical instability and a shift in investor appetite for safer returns as key factors, alongside the compliance burden of listing.  “The positive news is that IPOs are happening in Australia. We saw a couple of smaller transactions last week, and Virgin Australia looks like it has pressed the go button to re-list after four years of private equity ownership,” he said. Retail’s new reality  Koala’s decision to defer its IPO reflects a cautious financial move and a broader shift in the playbook for modern retail.  For today’s DTC brands, particularly those expanding internationally, growth is no longer a straight line fuelled by venture capital and public listings.  Flexibility, margin discipline and strategic adaptability have become the new hallmarks of success. Temple & Webster continues to scale with the benefit of early market entry, while Ecosa is charting its own course, achieving sustained growth online and now entering physical retail with three new stores.  For these players, Koala’s move sends a clear signal: in a post-Covid retail landscape defined by rising costs, macroeconomic constraints and sharper investor scrutiny, the priority has shifted from speed to substance.  Profitability, resilience and strategic focus now outweigh the rush to public markets. Koala may have retreated on an IPO; however, it is perhaps recalibrating and offering a glimpse of what the next chapter of retail leadership may demand.