Esprit Holdings decides to shut down nearly 67 stores in ANZ region
Category: #retail  By Saipriya Iyer  Date: 2018-05-04
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Esprit Holdings decides to shut down nearly 67 stores in ANZ region

Esprit Holdings Limited, a reputed brand name across the clothing, houseware, jewelry, and accessories sectors, has decided to shut down its business in Australia and New Zealand. In what may seem to be a highly significant move for the company, Esprit is likely to close over 60 stores in the region rendering nearly 350 employees jobless.

For the record, Esprit has been carrying out its business operations in Australia since the eighties. The regional operations had been seemingly incurring losses, owing to which the firm had been compelled to take the unfortunate business decision.

Esprit’s 67 outlets in the ANZ region include 25 stores in New South Wales, 6 outlets in NZ & Western Australia, one retail firm in South Australia, 17 in Victoria, and 12 in Queensland. Reports have speculated that nearly hundred Esprit employees will lose their jobs in New South Wales, while thirty in NZ and ninety personnel at Victoria will be jobless.

Thomas Tang, the executive director of the Esprit Group, claimed that the firm’s retail operations in Australia had been running in losses despite tremendous efforts put by the firm to improve the customer profitability. He further stated that the current move will help the firm explore the Asian markets.

Esprit’s business is spread across more than forty regions across the globe, while it accrues the revenue of approximately USD 50 million from the ANZ region. Last year, the region contributed nearly two percent towards its overall earnings.

Analysts are of the view that the shift in the consumer buying behavior as well as purchasing pattern of the shoppers in Australia has resulted in the slowdown of the retail business in the region. Furthermore, the arrival of fashion giants such as Zara and H&M in the country along with the rising trend of online shopping has diminished the popularity of the supermarket stores in Australia.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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