Dalian Wanda Group Co. (Shanghai) announced it will be closing some of its Wanda department stores throughout China. The company has not yet specified how many of its stores will close.
According to The Wall Street Journal, the closures are a consequence of an economic slowdown, poor sales numbers and increased e-commerce.
A report by Urban Land Institute (Washington, D.C.) found that department stores in China have been affected by these changes the most. The study looked specifically at five of the country’s department-store chains, although Wanda was not included in the review. According to the review, 2014 was the first time in years that department stores saw same-store sales drop.
However, the company plans to retain some of its most popular retail offerings such as jewelry, cosmetics and shoes.