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Foreign, Hong Kong retailers close stores in mainland China amid changing dynamics
High-profile store closures included those of Lane Crawford, Ikea, Triumph, Zara Home and Zara
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Zhu Wenqianin Beijing
Mainland China’s retail and retail property sectors have suffered another blow amid a fresh wave of store closures by foreign and Hong Kong brands.
“The series of closures come as a combined result of their outdated business models and profound changes in the macroeconomic environment,” said Wang Tianshi, an analyst at Shanghai-based LeadLeo Research Institute.
“Compared with emerging mainland retailers, Hong Kong and foreign brands often remain under a ‘selling on the mainland’ phase, rather than a ‘creating for the mainland’ phase.”
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Upscale Hong Kong department store chain Lane Crawford was expected to close its outlet in Chengdu, the capital of southwestern Sichuan province, after February 28. There was a core mismatch between the chain’s high-end business model and mainland consumers’ rapidly evolving lifestyle, according to Wang.
Multinational furniture retailer Ikea last week said seven mainland stores would cease operations from February 2, as the company shifted its focus on opening more than 10 small-format stores over a two-year period.
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As of December 31, German lingerie maker Triumph Group International had closed all of its bricks-and-mortar stores on the mainland.
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