The collapse of Australian craft chain Lincraft is a stark warning that the DIY retail industry is suffering, an expert has warned.

The brand announced on Tuesday that it will close all 60 stores across Australia and New Zealand after 80 years in business.

Marketing Focus managing director Barry Urquhart said time-poor Australians have ditched DIY in droves.

'Today's shoppers don't want to make something themselves - they want to buy something someone else has already made,' he told the Daily Mail.

'Craft work is predominantly people who are 65 years and older, women by gender, and therefore it's a contracted, and figuratively and literally, a dying marketplace.'

Mr Urquhart said Lincraft was trapped in a retail 'no man's land', too big to be considered niche but too small to compete with larger rivals.

'They were never going to be able to compete with Spotlight in advertising, marketing, purchasing, and pricing,' he said.

'What you've got now is a trend away from mainstream retail shopping centres towards big-box retailers.

'The bigger retailers are getting bigger [and] they are getting narrower in their product range specialisation.

'Bunnings is now going into detergents within the home … they're saying we're not just a hardware store - we've got pet products, toys, insurance.'

Compounding the crisis is a dramatic shift in consumer behaviour, Mr Urquhart said.

He said shoppers are shifting to 24/7 online convenience, with 68 per cent now turning to the internet before buying anything.

Lincraft managing director John Maguire told 3AW Breakfast that a change of retail behaviour was the tipping point for Lincraft, combined with more cheap goods imported from China and India.

'The reality is we see our business sales stabilising but the costs going up so in the end, when that happens, you've got to probably make the tough call,' he said.

'I think people are more time poor and the reality is people don't sew anymore. It was borne out of necessity and now you don't need to do it.

'It's a shrinking market and the reality is the world is really about the [big-box] retailer today, most of the surviving retailers will be category killers.'

Mr Maguire said the company's move from bricks and mortar stores to online shopping can be successful.

However, he added stores remain open for now but are expected to close in the coming months.

In an email to 500,000 Lincraft members on Tuesday the company said the news is both 'difficult and deeply emotional' for employees.

'After more than 80 years of serving creative communities across Australia and New Zealand, we have made the decision to progressively close our physical store network over the coming months,' the email said.

'We remain committed to serving our customers throughout this period and helping you continue the projects and passions you love.

'Importantly, Lincraft will continue to operate online, allowing customers to shop with us as the transition unfolds.'