Nike says it’s closing its clearance stores in China
NIKO STORE: Nike is closing its retail stores in several Asian countries, including the city of Chengdu, where the company has about 7,500 stores.
Nike has been in China for nearly a decade, and it had been a large seller there before its Chinese expansion, but it announced this week that it will be shutting its clearance shops there.
The company says it will close all its outlets in Chengdu in the first quarter of 2020.
It will close more than 20 stores in Taiwan, including in Taipei and Guangzhou, which has about 11,000 stores.
The decision is a blow to the company, which sells shoes and accessories through nearly 100 stores in the country, according to a Bloomberg News report.
The announcement follows months of pressure by China’s government to shut down some of its largest stores, and as a result Nike has struggled to compete with online retailers like Amazon and Alibaba.
It had hoped to open up some of those shops in China, which is still home to the world’s largest shoe market, but that strategy has been stalled in the face of China’s restrictions on foreign companies doing business there.
In its statement announcing the decision, Nike said that it “is closing its global retail presence in China and will cease operations at the end of the first calendar quarter.”
It said it would also close its online store, which it said had “been unable to attract significant demand from customers” in Chengdeu, and said it will shut down the remaining outlets in Hong Kong, Taiwan, Malaysia, Singapore and Brunei.
There were more than 400 outlets in China at the beginning of the year, according in a Bloomberg report, but those numbers are expected to drop this year as the government moves to close down retail outlets.
A Nike spokesman declined to comment.
Korea and Taiwan have seen some of the biggest growth in footwear sales in recent years, with sales in those countries increasing by 40% in 2020 compared with the previous year.