Plus   Neg

Burberry's Retail Sales In China To Hit As 24 Stores Closed Due To Coronavirus

Retailer Burberry Group plc (BRBY.L) announced Friday said the ongoing coronavirus outbreak will impact retail sales in both Mainland China and Hong Kong S.A.R.

In China, the company's 24 stores, out of 64 total stores, are closed at present, while the remaining stores are operating with reduced hours amid significant footfall declines.

Marco Gobbetti, Chief Executive Officer, said, "The outbreak of the coronavirus in Mainland China is having a material negative effect on luxury demand. While we cannot currently predict how long this situation will last, we remain confident in our strategy."

Burberry noted that the spending patterns of Chinese customers in Europe and other tourist destinations have been less impacted to date. However, due to the widening travel restrictions, the company anticipates these to worsen over the coming weeks.

The company said it is taking various actions but the benefit will be limited in the current year. The company also intends to continue its key growth initiatives in preparation for a recovery in luxury demand.

The company will provide a retail trading update following financial year end.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Drugstore chain Walgreens and courier services provider Postmates said they have expanded on-demand delivery to more than 7,000 Walgreens stores nationwide. The companies expect the service will help capitalize on the rising need for home delivery amid the coronavirus pandemic. The expansion will enable consumers in cities across the country to get home delivery of health and wellness items. A growing number of retailers in the U.S. are furloughing their employees as the coronavirus pandemic has resulted in the temporary closure of retail stores nationwide. The store closures came as more people in the U.S. are forced to remain at home to help curtail the spread of COVID-19 by promoting social distancing. Ride-hailing giant Uber Technologies said it is offering 10 million free rides and food deliveries to healthcare workers, seniors, and people in need, amid the surging coronavirus or covid-19 crisis. Across the world, the company aims to work with more cities, food banks, hospitals and others to move what matters, such as getting first responders to work, and food to those who need it.
Follow RTT