Nike’s Chinese stores close as apparel sales plummet
Chinese retailers such as Nike and Adidas are reeling from a sharp drop in sales at their flagship stores in the United States.
The apparel industry has been a major driver of the economy for decades, and it’s still growing, but its impact is spreading across the board, said David Kornman, an analyst at J.P. Morgan Securities in New York.
The loss of the apparel stores will hurt retail sales in the region, with sales falling 8.9% at Nike and 11.1% at Adidas in the fourth quarter, according to a report from S&P Global Retail.
That is the first time the apparel industry’s share of the U.S. economy has declined this year.
The decline in sales is expected to translate into losses of about $1 billion for the retail sector, according the report.
That would be the first loss of more than $1.3 billion in the industry.
Sales at apparel stores fell at Nike, Adidas and J.
Crew in the third quarter, while at Wal-Mart Stores Inc., they fell at Target Corp. and at Macy’s Inc., according to the report from Barclays.
The sales declines have made it harder for retailers to attract customers, according a Wall Street report last week.
The U.K.-based company that owns the iconic sports shoe brand has said that it is exploring whether it should shut down its stores and discontinue sales of its popular footwear, including Nike’s LeBron James line of shoes.
The company has about 8,500 stores in 30 countries, including the U and Australia.