Apple Inc. is shutting down a retail outlet in China, the first of its kind ever done, as it retrenches to stimulate sales in a market where it aims to regain its ground as iPhone maker.
According to the company, it will close its Parkland Mall store on the 9th of August in the Zhongshan District of Dalian City because of a shifting environment in the shopping complex. The Greater China region has roughly 56 stores or more than 10 percent of all outlets of over 530 stores worldwide.
“We’re always focused on providing an exceptional experience for all of our customers both online and at more than 50 Apple Store locations across Greater China. Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store there,” according to the company.
Weak growth in consumption and a drag on exports by global tariffs are bringing China to grips with deflationary pressures as one of the world economy drivers. The rise in retail sales has underperformed expectations and home prices declined more in June.
The closing store is in Dalian City and it has two stores. The other of the Olympia 66 shopping complex shops, is still open. The company said that employees working at the site which is going to close will have the opportunities to work elsewhere. The two destinations are about 10 minutes away
On a general note, Apple has been seeking to make a comeback in China. The country recorded a decline of 2.3 percent in sales to 16 billion dollars in the second quarter which ended March 29. Predictions had been made by analysts that the value was going to be 16.8 billion dollars.
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According to reports, Apple is opening a new store at UniwalkQianhai in Shenzhen on Aug. 16. It’s also planning additional locations in Beijing and Shanghai over the next year. It opened a store in the Anhui province in January.
The company is also expanding soon with new stores in Detroit, the United Arab Emirates, Saudi Arabia and India. A location in Osaka opened on July 26, and a major new flagship store debuted in Miami in January. The company also opened its first store in Malaysia last year.
While Apple is still adding new stores, overall retail expansion has slowed since the pandemic hit. Apple has instead focused on opening up its online retail store in new places, such as India and Saudi Arabia, and updating or moving older physical locations.
The company also appears to be becoming more selective in renewing its leases, announcing plans to shutter a store in Bristol in the UK on the same day as its closure in China. Other upcoming closures include the Partridge Creek store in Michigan and the Hornsby location near Sydney.
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Apple isn’t the only major brand to back out of China’s Parkland Mall. Earlier this year, the majority shareholder of the complex took full operational control, and retailers like Coach, Sandro and Hugo Boss haven’t renewed their leases in recent years.