Suning shutting half of its Laox store footprint in Japan
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Japanese electronics retailer Laox is to shut half of its stores in Japan as its customer base dried up due to Covid-19 social-distancing.
Laox is managed by Chinese electronics giant Suning and the duty-free stores had been a popular location for Chinese tourists looking for Japanese appliances.
The significant drop in the number of foreign tourists, especially those from China, has forced the company to close 12 outlets in the country to cut costs and improve cash flow.
The 12 stores will include locations in Hokkaido, Kyushu, Tokyo and Okinawa.
Since February, the company has twice called on staff to apply for voluntary retirement to restructure due to the financial impact of the pandemic. Laox recorded a net loss of US$18.1 billion for the March quarter.
Questions & Answers
Q.Why is Laox shutting half of its stores in Japan?
Why is Laox shutting half of its stores in Japan?
Laox is shutting stores because its customer base dried up due to Covid-19 social-distancing measures. The significant drop in foreign tourists, especially from China, forced the company to close outlets to cut costs.
Q.What kind of stores are being closed by Laox?
What kind of stores are being closed by Laox?
The stores being closed are duty-free electronics stores. These locations were popular with Chinese tourists seeking Japanese appliances, but the reduction in foreign visitors has impacted their business.
Q.How many stores is Laox closing in Japan?
How many stores is Laox closing in Japan?
Laox is closing 12 outlets across Japan. These closures will include locations in Hokkaido, Kyushu, Tokyo, and Okinawa, significantly reducing its physical footprint in the country.
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