Mango stops partnership JC Penney
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Spanish fast fashion retailer Mango is to close 450 points of sale in the US after deciding not to renew a partnership agreement with department store JC Penney.
The two companies had a five year contract where Mango operated concessions in 450 of the department stores, but they collectively account for just 0.5 per cent of the label’s global sales.
The stores will close in February, leaving Mango with just seven stand alone stores in the US.
But a spokesman for the company said it would not be exiting the US market. Instead it will look to open more of its own stores over time, in selected key cities such as New York and Miami.
Privately-owned Mango is struggling to hold its own against its larger rivals, fellow Spanish brand Zara and Swedish label H&M, internationally, despite a presence in 100 countries. Its profit fell 11 per cent last year.
Questions & Answers
Q.What is the primary reason for Mango closing its points of sale in the US?
What is the primary reason for Mango closing its points of sale in the US?
Mango is closing its 450 points of sale in the US because it has decided not to renew its five-year partnership agreement with department store JC Penney, where it operated concessions.
Q.What percentage of Mango's global sales did the JC Penney concessions represent?
What percentage of Mango's global sales did the JC Penney concessions represent?
The concessions operated by Mango within JC Penney department stores collectively accounted for a very small proportion, just 0.5 per cent, of the label’s total global sales figures.
Q.Will Mango completely withdraw from the US market after these closures?
Will Mango completely withdraw from the US market after these closures?
No, a company spokesman confirmed Mango will not be exiting the US market. Instead, it plans to open more of its own standalone stores over time in selected key cities like New York and Miami.
Q.How did Mango's financial performance fare last year?
How did Mango's financial performance fare last year?
Mango's profit fell by 11 per cent last year. The privately-owned retailer is reportedly struggling to compete internationally against larger rivals such as Zara and H&M.
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