Dutch clothing chain C&A is closing 21 of its 120 Spanish shops in August, because they are loss-making. 14 of the shops are C&A, while the other seven are C&A Kids locations. The company is also investing 12 million euro in opening new shops at strategic locations and in renewing current profitable locations.
Cutbacks and rebuilding at same time
C&A is not looking at names in choosing the locations doomed to close. One of the shops that is getting the boot is the one in the centre of Valencia. It has been open for only two years and was worth an investment of about 2 million euro.
C&A also wants to show it is still very interested in the Spanish market. Therefore they are not only closing shops, but they are also opening new ones. The first new store will open this month on the Gran Via, one of the more important shopping streets in Madrid. In October another one will open in the Parque Ferrol in Ferrol.
Lower prices because of crisis
22 shops will also be thoroughly renovated. This is mainly done to restyle the chain, in order to attract a new and younger audience.
C&A has also adjusted its prices to the economic condition of Spain. 90 percent of the products on offer cost less than 19 euro, for 54 percent prices are lower than 9 euro.
C&A had sales of 440 million euro in 2012 in Spain. That was 1.5% less than the year before. Total sales of the company worldwide came to 6.8 billion euro. C&A has 1,500 shops in 20 countries.