It has been a busy week for retailer Urban Oufitters, reporting stellar sales figures, a new re-sale platform and the latest, its exit from the Chinese market. The company’s customer service will be available until September 24th.
The company said on its Weibo account that it would exit China as part of a new global strategy, and that the closing of its stores would be temporary, although a new date was not provided. Urban Outfitters currently has 1.14 Million followers on its Tmall online store.
The Business of Fashion reported that “international mass market brands face serious challenges in China. Asos and Topshop, New Look and Old Navy have all left the market. C&A also sold its China business last year. Bershka and Pull & Bear, Stradivarius, three Inditex brands closed all their physical stores. Mango announced that it will not be opening any new stores. H&M’s China sales dropped 32 percent in the second quarter.
Earlier this week Urban Outfitters CEO warned of trade disruptions and shipping delays of products from Asia to the U.S. and Europe. Bloomberg was informed by Richard Hayne that “our greatest concern right now” is getting inventory. He said this not because of delays or trade disruptions. The Philadelphia-based company stated it would ship goods via air freight. This more expensive but reliable method will ensure that products reach its retailers in time for Christmas peak.
