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Business · Markets
Macy’s announces withdrawal from Chinese market
CKN
2018/12/05 08:06:51
1,828
China's News, China's Financial News, Tmall Global Macy

Dec 05, 2018 (China Knowledge) - Tmall Global Macy's has announced that it would no longer be receiving orders from Dec. 3 and stop all services from Dec. 31.

Six months ago, Macy's departmental store announced on its official website that it was about to stop operating, mainly due to business strategy adjustment. The double closure of official network and business platform not only means that Macy's dual channel strategy has failed, but also means Macy's department stores have completely withdrawn from the Chinese market with all Chinese physical stores have been closed.

In addition to the Chinese market, the company's international market has also been declining. Frequent closures and layoffs have led to a rapid decline in Macy's performance. To cut costs, it announced in early 2018 that it would close a number of stores. Earlier, 68 stores were shut down in 2017 and more than 10,000 jobs were laid off; 30 stores were shut down in 2016.

According to public data, Macy's profit fell 43% in 2016, and its net profit was only USD 611 million. With the closure of China's official website and Tmall official overseas flagship store, Macy's vision of trying to penetrate the Chinese market through merchants also failed.

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