China’s 361 Degrees Closes 464 Stores
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Chinese sportswear brand 361 Degrees announced its operational overview for the fourth quarter of 2016, and stated that the company’s main brand achieved an individual store sales increase of 7.5%; and its individual store sales of children’s clothing increased by 7.7% during the reporting period.
In the fourth quarter of 2016, 361 Degrees continued to cooperate with 31 exclusive distributors under a franchising business mode. During the reporting quarter, the group opened 184 new stores and closed 464 stores, and the total number of its stores reached 6,357. 361 Degrees said that it is an ideal scale to maintain its store number at about 6,500; meanwhile, they will continue to improve store efficiency.
Based on statistics from 3,543 sample stores, which kept uninterrupted operation for over 24 months, the company’s individual store sales of its main brand saw an increase of 7.5%; its average retail discount was 25%; and its channel inventory turnover ratio was 4.1 times.
In addition, during the fourth quarter of 2016, the company’s independently operated children’s clothing business added 103 new stores and closed 334 stores, reaching total sales sites of 2,000. The individual store sales of children’s clothing saw an increase of 7.7% and the channel inventory turnover ratio was 4.1 times.
Questions & Answers
Q.What was the net change in the number of 361 Degrees stores during the fourth quarter of 2016?
What was the net change in the number of 361 Degrees stores during the fourth quarter of 2016?
The company opened 184 new stores and closed 464 stores, resulting in a net decrease of 280 stores for the main brand during the reporting period. The total number of stores reached 6,357.
Q.Did the company's individual store sales performance improve for its main brand?
Did the company's individual store sales performance improve for its main brand?
Yes, based on statistics from 3,543 sample stores operating for over 24 months, the main brand achieved an individual store sales increase of 7.5% during the fourth quarter of 2016.
Q.How many children's clothing stores did the company operate by the end of the fourth quarter?
How many children's clothing stores did the company operate by the end of the fourth quarter?
During the fourth quarter of 2016, the independently operated children’s clothing business added 103 new stores and closed 334. This brought their total sales sites to 2,000.
Q.What is the company's target number of stores for its main brand?
What is the company's target number of stores for its main brand?
361 Degrees stated that maintaining its store number at approximately 6,500 is considered an ideal scale. They also aim to continue improving store efficiency alongside this target.