Levi's Closes Half Their Stores in China
Text: Allie Kenvin
American denim label Levi Strauss & Co has shut down about half its stores in China in the wake of the coronavirus outbreak, Chief Financial Officer Harmit Singh said on Thursday. The company is projected to lose about 3% of its annual revenue and will take a massive financial loss.
Their largest store in China to date, standing at three stories and approximately 7,500 square feet, opened just months ago back in October of 2019 in Wuhan. With a population of 11 million, Wuhan is the city where the coronavirus originated. The flu-like virus, which has now spread to 23 countries, infected 9,818 people, and killed 213, proves deadly.
While people around the globe are concerned about the impact of this epidemic, companies like Starbucks have also announced that they have closed about half their stores in China, taking a major financial hit. Calling China the top priority, it was also announced that the company will stop all employee travel in and out of China. With stores closing and spending slowing in the world’s most populous country, Singh says “It will put a dampener on our growth objectives in the near term.”