New Look exits China

New Look has announced it will be exiting China before the end of the year.

The retailer, which said it has been gradually reducing its store count, will close all remaining 120 stores by the end of December 2018. The retailer’s Shanghai head office will close shortly afterwards.

New Look said that despite substantial investments in the region, performance has been “below expectations” and lack of sales and profitability has led to the decision to exit.

“Having reviewed the trading performance of our business in China and the substantial investment required to continue operations in the market, we have made the difficult decision to exit our stores in China,” said New Look’s executive chairman, Alistair McGeorge.

“Our priority will be to support all affected staff during this time. As our turnaround plans continue, we remain focused on ensuring that New Look is well positioned to drive strong business performance and profitable growth.”

New Look said a strategic review of its other international markets is ongoing.