German fashion house Hugo Boss has announced its plans to close its China outlets as part of a review of its global store estate. The retailer will close around an approximate 20 stores.
Its recent statement likens Boss to other upmarket fashion retailers who have been hit by a slowdown in international luxury expenditure.
Instead, the retailer has shifted its business strategy to focus on online profits and said that it will limit its new store openings to top global locations only.
Following its review, Boss stated on Thursday that it will continue to close more stores elsewhere and will open less than 20 new sites worldwide, significantly down from its total 72 in 2015.
The retailer best known for its tailored men‘s suits cut prices for its spring collection in China by 20% and a further 10% is due in its second half.
Total investment in 2016 is likely to be below €200m in comparison to €220m last year.
“To safeguard our profitable long-term growth, we have to align our strategy even more rigorously with customer needs. Management has therefore initiated measures to successfully address the external and company-specific challenges. Our brand‘s attractiveness, the quality of our operating platform, our financial strength and our highly motivated workforce give us strong foundations for the future” said Mark Langer, Financial Director at Hugo Boss.
