American Eagle closing all Japanese stores

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All American Eagle and Aerie stores in Japan are set for closure by year-end.
Eagle Retailing Corporation, the Japanese partner of American Eagle Outfitters, said it is shutting down all American Eagle and Aerie stores including its digital business in Japan starting from December 18, with the exit to be completed by the end of the month.
The closure forms part of Eagle Retailing’s decision to shift focus to business wear and the mutual termination of a license agreement with Pennsylvania-based American Eagle Outfitters.
Denim brand American Eagle and lingerie brand Aerie has been operating in the Japanese market for seven years. Eagle Retailing opened the first store in 2012, two years after signing the license agreement. The two brands currently have 33 combined brick-and-mortar stores, complemented with an e-commerce business.
However, American Eagle Outfitters says it remains committed to continued growth in the Japanese market despite the closure.
“The company is exploring options for its future business model and is taking steps to reposition its distribution channels to best serve customers,” it said.
“We thank our partners at Eagle Retailing for establishing a strong brand presence and we look forward to our next chapter of growth,” the company added.
Questions & Answers
Q.Which entity is responsible for closing the American Eagle and Aerie stores in Japan?
Which entity is responsible for closing the American Eagle and Aerie stores in Japan?
Eagle Retailing Corporation, the Japanese partner of American Eagle Outfitters, is closing all stores and its digital business. This forms part of their decision to shift focus to business wear.
Q.What is the primary reason given for Eagle Retailing Corporation's decision to close the stores?
What is the primary reason given for Eagle Retailing Corporation's decision to close the stores?
The closure is due to Eagle Retailing Corporation's decision to shift its business focus to business wear. This also involved the mutual termination of their license agreement with American Eagle Outfitters.
Q.How many American Eagle and Aerie stores are currently operating in Japan?
How many American Eagle and Aerie stores are currently operating in Japan?
There are currently 33 combined brick-and-mortar American Eagle and Aerie stores in Japan. These are complemented by an e-commerce business, which is also set to close.
Q.Will American Eagle Outfitters completely withdraw from the Japanese market after these closures?
Will American Eagle Outfitters completely withdraw from the Japanese market after these closures?
No, American Eagle Outfitters states it remains committed to growth in the Japanese market. The company is exploring options for a future business model and repositioning its distribution channels.
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