Gerry Weber closes Canadian stores
After entering the Canadian market barely two years ago, German women’s fashion brand Gerry Weber is closing all of its corporate owned Canadian stores.
Gerry Weber operates nine stores out of Canada, primarily located in Ontario. Eight of them have closed, while the ninth is currently in closure.
The closures are a part of a global strategy Gerry Weber launched last February to optimize its retail performance and boost profits. Baptized “FIT4GROWTH”, the realignment programme was initiated in hopes of getting the struggling retailer back to a state of profit.
In the Canadian market, the company found that the brand would operate more effectively through wholesale partnerships, as opposed to corporate operated stores. Therefore, they will continue to be present in Canada through wholesale partners only, as well as through three franchised Gerry Weber stores that will remain open.
“The financial year has shown that the realignment programme was necessary and is the right strategy. But in view of the continued challenging market environment, we must not let up now. We will continue to implement the FIT4GROWTH realignment programme with great determination and take the measures that are necessary to help Gerry Weber return to profitable growth,” says CEO Ralf Weber, in the company’s most recent end of financial year statement.
The realignment programme is expected to take a total of 18 to 24 months.
Gerry Weber was founded in 1973. The women’s fashion brand first entered Canada in April 2015 with the opening of a mall location at Toronto’s Yorkdale Shopping Centre.
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