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“The series of closures come as a combined result of their outdated business models and profound changes in the macroeconomic environment,” said Wang Tianshi, an analyst at Shanghai -based LeadLeo Research Institute.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.”
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.
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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