First-in-history: Apple is closing a retail store in China
What's the story
In a major development, Apple has announced its first-ever retail store closure in China. The company will shut down its Parkland Mall store in Dalian City on August 9. The decision comes as part of a response to the changing environment at the shopping complex. Despite this setback, Apple remains committed to providing an exceptional customer experience across its other stores in Greater China and online platforms.
Market footprint
Apple operates 56 stores in Greater China
Apple operates roughly 56 stores in Greater China, which accounts for over 10% of its global retail footprint of more than 530 outlets. The decision to close the Parkland Mall store comes after several other retailers have left the complex, suggesting a broader trend affecting retail dynamics in the region. The Parkland Mall location is one of two Apple stores in Dalian City; the other store at Olympia 66 shopping complex will remain operational.
Market conditions
Sales fell 2.3% to $16B in Q2
China is currently grappling with deflationary pressures, falling consumer spending, as well as global tariffs impacting exports. Amid such economic challenges, Apple's sales in China fell 2.3% to $16 billion in Q2, missing the analysts' expectations of $16.8 billion.
Expansion strategy
Apple is still bullish on the Chinese market
Despite this setback, Apple is not pulling out of the Chinese market. Earlier this year, Apple opened another store in Anhui province. The company will open a new shop at Uniwalk Qianhai in Shenzhen on August 16, and has plans for more stores in Beijing and Shanghai over the next year.