US retailer Urban Outfitters to exit China

31 Aug '21

2 min read

Pic: Shutterstock

US brand Urban Oufitters will cease trading in China after it closes its Alibaba platform Tmall store on September 12 and removes all its online products. Its customer service, however, will be available till September 24. It said on its Weibo account that it would exit China as part of a new global strategy. It has 1.14 million followers on its online Tmall store.

Urban Outfitters also said that the move is ‘temporary’. It is yet to set up any brick-and-mortar store in China and is not available through any other e-commerce channel.

Some days back, Urban Outfitters chief executive officer Richard Hayne, in a conversation with a global newswire, warned of trade disruptions and shipping delays of products from Asia to the United States and Europe. He expressed his concern over ‘getting the inventory’, and not when it is going to come in or how much it is going to cost.

The Philadelphia-based company said it would ship goods via air freight, a more costly but reliable route to ensure products are delivered to its retail network in time for the autumn and Christmas peak.

Several global mass market brands like Asos, New Look, Topshop and Old Navy have exited the Chinese market. Even C&A sold its China business last year. Three Inditex brands—Bershka, Pull & Bear and Stradivarius—closed all their physical stores and Mango has announced a moratorium on opening new stores.

Urban Outfitters Inc. operates the Anthropologie, BHLDN, Free People, FP Movement, Terrain, Urban Outfitters, Nuuly and Menus & Venues brands.

Fibre2Fashion News Desk (DS)

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