Foreign retailers are under pressure in China, with Korean retailer Lotte closing four of its underperforming stores, and French retailer Carrefour reporting a drop in sales at its stores in China.
Lotte has announced the closure of four of its stores in Shandong province amid a drop in its like-for-like sales of 7.2 per cent in the first quarter of this year, according to IGD Retail Anaylsis.
The drop in sales and store closures hasn’t affected Lotte’s plans to expand its network of 99 stores, however, with 110 stores to be open in China by the end of 2015, with more investments in logistics planned as well.
Fellow Korean retailer Emart is also struggling in China, closing five of its stores in 2014 due to unprofitability and weakening competitiveness, with just nine stores operating in China.
Carrefour China has also posted a drop in sales in China. While Carrefour’s overall sales in Asia grew 13 per cent in the second quarter of the 2015 financial year, its sales in China dropped 11.4 per cent, and 12.3 per cent like-for-like.
Sales in Taiwan rose during the same period, with Carrefour citing a slow down in consumption China for the drop in sales.
The drop in sales hasn’t dampened Carrefour’s expansion plans in the country though; with plans to expand is logistics and distributions centres in China over the coming year.
No comments yet