Japanese retailers trims down number of women’s clothing shops
Aeon Co. Ltd, the second largest retailer in Japan, is reportedly trimming down the number of its women’s business and casual clothing shops this year by up to one hundred. This was reported by a Japan-based business journal.
Following suit are other Japanese retailers such as Cox Co and Blue Grass Co.
Due to financial crisis, planned store expansions by these companies had been cancelled and in order to reduce more expenditure, the closing of stores were deemed necessary.
Low consumer spending on women’s business and casual clothes was the main reason behind the shutdown of several retail outlets. Japan is one of the hardest hit nations by the global financial crisis, entering one of the deepest recessions in years.
Aeon reported earlier this month that its annual net income dropped significantly, the first time in the past seven years, an indication that tough times are here and some things must be done to offset the losses.
Cox Co revealed that it will close about ten percent of its stores while Blue Grass will also shut down a hundred stores for this fiscal year.
The aforementioned companies will prioritize the closing of underperforming stores.
