"Close the store in China in the near future." This means that the British clothing brand officially announced its withdrawal from the Chinese market.
NEW LOOK announced on its official Weibo: "I sincerely thank you for your continued attention and support to New Look. I am very honored to witness the growth of New Look in China. I regret to announce that we Newchic Coupon will close our location in China in the near future. Shop. From now on, the whole store will be cleared, and non-quality problems will not be refunded."
New Look said that the 120 stores involved in the Chinese market will be closed this year and it is expected that 730 employees will face unemployment. It is understood that many local LO LOOK stores have started the clearance sale in November, and even some of the NEW LOOK stores have been closed. The discounts of other stores that are still open are very large, and some stores have a discount of 3 fold.
NEW LOOK entered China for the first time in 2014 and expanded rapidly with 30 stores per year. By 2016, Chinese stores have exceeded 100. NEW LOOK has proposed the “Open 500 stores in three years” program. By the middle of this year, New Look announced the termination of its brand expansion in China, and said it has re-examined its development strategy in China and Zaful Coupons suspended plans to open 500 physical stores.
In addition to the difficult time in the Chinese market, New Look itself is also in debt. Since 2017, New Look has been suffering from losses. According to the 2017 to 2018 annual report released in the year of NEW LOOK, the performance of NEW LOOK in this year dropped sharply, and the annual loss reached 74.3 million pounds (about 647 million yuan). The decline in earnings analysis was due to the failure of the brand transformation and expansion strategy, especially in the Chinese market. In addition, some analysts said that the blind expansion of the brand in China is also one of the main reasons for the sluggish performance.