Japanese label Onward to slash store network
In this article (5)
Japanese label Onward is preparing to shutter around one in five of its global outlets.
The move preempts the firm’s crossover towards e-commerce at a time when its physical stores – most of which sell from department stores in Japan – are experiencing a drop in customer demand.
Onward is expected to adjust its financial forecast in line with anticipated costs arising from the store shutdowns resulting in a net loss of around ¥30 billion (US$278 million). The firm has not recorded a loss within the past 11 years.
Employees of the Japanese label Onward who are affected by the closures are likely to be reassigned to roles in expanding the brand’s e-commerce business.
Questions & Answers
Q.How many stores is Onward planning to close globally?
How many stores is Onward planning to close globally?
Onward is preparing to shutter about one in five of its global outlets. This move aligns with the firm's strategic shift towards e-commerce, as its physical stores face declining customer demand.
Q.What is the primary reason behind Onward's decision to close stores?
What is the primary reason behind Onward's decision to close stores?
The closures are a preemptive measure as Onward shifts towards e-commerce. Its physical stores, mainly in Japanese department stores, are experiencing a significant drop in customer demand, necessitating this strategic change.
Q.What financial impact is Onward expecting from these store closures?
What financial impact is Onward expecting from these store closures?
Onward anticipates adjusting its financial forecast, expecting a net loss of around ¥30 billion (US$278 million) due to the store shutdowns. The firm has not recorded a loss in the past 11 years.
Q.What will happen to employees affected by the store closures?
What will happen to employees affected by the store closures?
Employees of Onward affected by the store closures are likely to be reassigned. Their new roles will involve expanding the brand's e-commerce business, supporting the company's strategic shift.
Reader pulse
Will Onward's store closures boost its future profitability?
20,152 votes so far