Apparel giant Onward closes 700 unprofitable stores April 13 12:47
Onward Holdings, a leading apparel company, recorded a loss following the closure of stores in Japan and overseas. The company says it will close an additional 700 unprofitable stores this year.
Onward Holdings, which develops fashion brands such as “23 Wards” and “Five Continents”, reported a year-end sales of 24.8 billion yen, a 3.2% increase over the previous year. From the previous year's surplus of 4.9 billion yen to a final deficit of 52.1 billion yen.
This was mainly due to a decline in sales of winter clothing due to the effects of the warm winter, as well as the recording of losses due to retirement benefits for voluntary retirees and the closing of unprofitable stores in Japan and overseas.
Onward Holdings intends to restructure its business by closing approximately 700 unprofitable stores this year and relocating employees to growth areas such as online shopping.
On the other hand, due to the spread of the new coronavirus infection, sales at stores this month have fallen 70% compared to the previous year by the 12th, and there is no prospect of any further impact. I can not do it.
Michinobu Homoto, President of Onward Holdings, said, "We cannot generate profits with the conventional operation. We would like to strengthen online shopping and consider a store operation that considers customer convenience."