Media365
US fashion brand Guess has told customers it will close all its stores in mainland China by the end of March, pending a new business model at a time when a growing number of international fashion retailers retreat from the market amid what analysts believe are issues including weak localisation and slow decision-making.
Other foreign brands that have withdrawn entirely from mainland China in recent years include US label Old Navy, UK brand Topshop, and several labels owned by Spanish fashion group Inditex – Bershka, Pull&Bear, Stradivarius and loungewear brand Oysho.
In late February, Guess informed customers via text messages that it would close all its online and offline stores. As of Monday, all products from online flagship stores on e-commerce platform Tmall were removed from shelves.
In a notice on its official Tmall flagship stores, Guess said it would close its official online store and it had already removed all products from sale. The brand planned to reposition itself in the Chinese market under a new business model, according to the statement.
Guess did not immediately reply to an email inquiry from the South China Morning Post.
The decision also comes after US-based Authentic Brands Group (ABG) acquired a majority stake in Guess in January. The deal valued the clothing brand at US$1.4 billion, including debt.
