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By
Reuters
Published
Nov 10, 2015
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Spain's Mango to shut 450 U.S. sales outlets

By
Reuters
Published
Nov 10, 2015

Spanish fashion chain Mango will close 450 sales outlets in the United States early next year after ending a five-year deal to display its clothing lines at department store J.C. Penney, a spokesman said.

Mango


The unlisted retail chain, which competes with Inditex brands such as Zara as well as Sweden's H&M, will not be renewing the expiring agreement and will close the outlets around February, the spokesman said, confirming a report on website moda.es.

Mango will still have seven stores in the United States, including ones in New York and Miami, and it plans on expanding there again, focusing on key cities such as these.

The closures should not have a major effect on Mango's revenue, as the JC Penney outlets only accounted for 0.5 percent of its global sales, the spokesman said.

J.C. Penney posted a lower-than-expected loss for the second quarter, though the department store operator has struggled in recent years as sales declined, and it abandoned its attempt to go upmarket in 2013.

Family-owned Mango has stores in more than 100 countries. Its annual profit fell 11 percent in 2014 after investing in an international expansion plan.

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