Swedish children's fashion brand Polarn O. Pyret has decided to close its three Dutch stores, while its Chinese retail branch will also be shut down. Customers can still use the brand's web shop.
Not profitable enough
Polarn O. Pyret is part of RNB Retail and Brands, which has decided it will clear out its less profitable branches. That includes the Dutch stores, according to Fashion United, even though they have only been around since 2013 in the Netherlands with stores in Eindhoven, Utrecht and Maastricht.
The Swedish brand has decided to focus on markets where it generates more turnover and in the last fiscal year alone, the Dutch and Chinese branches generated about 11 million Swedish krona (1 million euro), compared to Polarn O. Pyret's global 667 million krona (72 million euro) turnover.
"We are pulling out of countries that have a negative effect on the company's profitability", CEO Magnus Håkansson said in a press release. "I am convinced profits will grow much faster once this process is done."