Apple Shuts Its First Retail Store in China
Apple Inc. is shutting down a retail store in China for the first time, highlighting a significant retreat in a market where the iPhone maker is working to boost sales. The company announced on Monday that it will close its Parkland Mall store in the Zhongshan District of Dalian City on Aug. 9, citing a changing landscape at the shopping complex. In the Greater China region, it operates approximately 56 stores, accounting for over 10 percent of its global footprint of more than 530 outlets.
“We’re always focused on providing an exceptional experience for all of our customers both online and at more than 50 Apple Store locations across Greater China,” the Cupertino, California-based company stated. “Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store there.” China faces deflationary pressures as consumption declines and global tariffs impact exports, a key driver of the world’s second-largest economy. Retail sales growth has not met expectations, and home prices declined more rapidly in June. The closing store is one of two sites in Dalian City. Another store at the Olympia 66 shopping complex continues to operate. The company stated that employees at the closing site will be offered opportunities to work elsewhere. The two locations are approximately 10 minutes apart.
The company is set to expand with new stores in Detroit, the United Arab Emirates, Saudi Arabia, and India. A location in Osaka opened on July 26, while a major new flagship store launched in Miami in January. Last year, the company opened its first store in Malaysia. Although Apple continues to open new stores, the overall pace of retail expansion has decelerated since the pandemic began. Apple has concentrated on expanding its online retail presence in new markets, including India and Saudi Arabia, while also updating or relocating older physical stores.
The company seems to be increasingly selective in renewing its leases, announcing plans to close a store in Bristol, UK, on the same day as its closure in China. Upcoming closures also include the Partridge Creek store in Michigan and the Hornsby location near Sydney. Apple is not the sole major brand withdrawing from China’s Parkland Mall. Earlier this year, the majority shareholder of the complex assumed full operational control, while retailers such as Coach, Sandro, and Hugo Boss have not renewed their leases in recent years.
