Descente forced to shutter stores in South Korea as anti-Japan bias continues
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Japanese sportswear label Descente is shuttering 47 kidswear stores in South Korea in the wake of anti-Japanese sentiment combined with the impact of Covid-19 on the territory.
The Young Athlete outlets, which deal in clothing and accessories for kids, will close their department store and mall locations in August, with stock being redistributed to Descente’s full-range stores.
The formerly popular Descente brand saw an 89-per-cent dip in operating profits last year to US$7.26 million compared with its 2018 results and a 15-per-cent drop in sales to $496.9 million. The drop was initially prompted by souring diplomatic ties between Japan and Korea, prompting a general boycott of Japanese goods in the territory.
Further declines in business due to the coronavirus pandemic proved too much for the firm, with the Young Athlete stores deemed unviable to continue trading.
Similar closures have been seen amongst other Japanese firms trading in the Korean market, including fast-fashion giant Uniqlo, which this month announced it would close physical stores of its diffusion brand GU in the country.
Questions & Answers
Q.Which specific Descente brand is being closed down in South Korea?
Which specific Descente brand is being closed down in South Korea?
Descente is closing its Young Athlete outlets, which specialise in clothing and accessories for children. These are the 47 kidswear stores that will shut in August.
Q.What are the primary reasons cited for Descente closing its stores in South Korea?
What are the primary reasons cited for Descente closing its stores in South Korea?
The closures are due to anti-Japanese sentiment, which led to a boycott of Japanese goods, combined with the severe impact of the Covid-19 pandemic on business operations.
Q.How did Descente's financial performance in South Korea decline last year?
How did Descente's financial performance in South Korea decline last year?
Descente experienced an 89% dip in operating profits, falling to US$7.26 million. Sales also dropped by 15%, reaching US$496.9 million compared to the previous year.
Q.Have other Japanese retail brands also faced store closures in South Korea recently?
Have other Japanese retail brands also faced store closures in South Korea recently?
Yes, other Japanese firms have faced similar closures. Fast-fashion retailer Uniqlo, for example, announced it would close physical stores of its GU diffusion brand in the country this month.
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