Apple to shutter a retail store in China for the first time ever

[LOS ANGELES] Apple is closing a retail store in China for the first time, marking a notable retreat in a market where the iPhone maker is striving to revive sales.

The company said on Monday (Jul 28) that it will shut its Parkland Mall store in the Zhongshan District of Dalian City on Aug 9, citing a changing landscape at the shopping complex. It has about 56 stores in the Greater China region, making up over 10 per cent of its footprint of more than 530 outlets globally.

“We are 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,” the Cupertino, California-based company said. “Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store there.”

China is grappling with deflationary pressures as consumption wanes and global tariffs hurt exports, a major engine of the world’s No 2 economy. Retail sales growth has fallen short of forecasts, and home prices dropped at a faster pace in June.

The closing store is one of two locations in Dalian City. The other, a 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.

More broadly, Apple has been looking to stage a comeback in China. Sales in the country fell 2.3 per cent to US$16 billion in the second quarter, which ended Mar 29. Analysts had predicted US$16.8 billion.

Apple is opening a new store at Uniwalk Qianhai in Shenzhen on Aug 16. It’s also planning additional locations in Beijing and Shanghai over the next year, Bloomberg News has reported. It opened a store in 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 Jul 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.

Apple is not 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 such as Coach, Sandro and Hugo Boss have not renewed their leases in recent years. BLOOMBERG