New Look decides to exit from China

As part of the review of New Look’s international strategy, New Look Retail Group Limited said in a statement that its board of directors has decided to exit its retail business in China. The company said, following the decision, New Look Commerce (Shanghai) Co., Limited has been gradually reducing the number of its stores and now intends to close its remaining 120 stores in the market by the end of December 2018 and the company’s Shanghai head office will close shortly after this date.

Commenting on the development, Alistair McGeorge, Executive Chairman, New Look, said in a statement: “Having reviewed the trading performance of our business in China and the substantial investment required to continue operations in the market, we have made the difficult decision to exit our stores in China. Our priority will be to support all affected staff during this time.”

The company added that the decision was taken since despite substantial investments in China in recent years, performance has been below expectations and failed to achieve the necessary sales and profitability to support the significant future investment required to continue these operations. The strategic review of New Look’s other international markets is continuing as the part of company’s turnaround strategy.

Picture:Facebook/New Look