In what is being seen as a first defensive move by Apple, the iPhone manufacturer has decided to close one of its retail shops in the country – marking it the first-ever closure since entering the market in 2008.
China was the second-biggest retail market for Apple after the United States, but has faced tough competition from local brands in recent times.
First-ever Apple store closure in China
On Monday, Apple announced that it would close its store in Parkland Mall, located in the Zhongshan District of Dalian City, on August 9.
Apple stated that the closure was due to changes in the shopping complex’s landscape, a claim echoed by several locals. The mall has been experiencing a decline in footfall, which has led to the departure of several globally renowned brands. Retailers like Coach, Sandro and Hugo Boss haven’t renewed their leases in recent years.
In a statement to Bloomberg, Apple said: “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.”
Apple has about 56 stores in the Greater China region, making up over 10 per cent of its footprint of more than 530 outlets globally.
Dalian City has two Apple Stores, and they are less than 10 minutes apart. The other store at the Olympia 66 shopping complex remains open.
Employees at the site that’s closing will be given opportunities to work elsewhere, the company said. The two locations are roughly 10 minutes apart.
Apple is opening a new store at Uniwalk Qianhai in Shenzhen in the middle of August, and Bloomberg reported it is planning additional locations in Beijing and Shanghai over the next year.
On July 21, the company announced the opening of Apple Retail Service and App Store in Saudi Arabia, and said they have plans to open several stores on the country, including an iconic retail store in Diriyah, a UNESCO World Heritage site.
The company is adding new stores in Detroit, the United Arab Emirates, and Bengaluru in India. A location in Osaka opened on July 26. The company also opened its first store in Malaysia last year.
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