THE WHAT? Space NK has closed all retail outlets in China, according to WWD.com.
THE DETAILS The beauty retailer entered the Chinese market in January 2018, opening a total of eight stores across Shanghai, Beijing, Chonqing and Chengdu. The company has confirmed to WWD.com that is has now shuttered all stores and let its staff go.
Andy Lightfoot, Chief Executive Officer of Space NK, said, “Over the past two years, we have invested in a multichannel approach to retailing in China. As we constantly evaluate how best to serve and engage with our customers, the uncertain outlook ahead has underlined the importance of acting decisively.
Despite closing stores, Lightfoot suggested that the country was still a key focus for the company and that it would serve it via the spacenk.com website. He says, “We have seen a strong growth in our online community and a growing trend for Chinese customers to visit our global channels.
THE WHY? Speaking about the decision, Lightfoot said, “The simplification allows us to concentrate on our core business and operations while focusing investment on continuing to grow across all key markets, of which China remains one.”
With China still lauded as a future focus, the reason for closing stores was not announced. However, the ramifications of the coronavirus outbreak have hit shops hard, with retail sales in the country falling 20 percent over the past two months.