Japanese label Onward is preparing to shutter around one in five of its global outlets.
The move preempts the firm’s crossover towards e-commerce at a time when its physical stores – most of which sell from department stores in Japan – are experiencing a drop in customer demand.
Onward is expected to adjust its financial forecast in line with anticipated costs arising from the store shutdowns resulting in a net loss of around ¥30 billion (US$278 million). The firm has not recorded a loss within the past 11 years.
Employees of the Japanese label Onward who are affected by the closures are likely to be reassigned to roles in expanding the brand’s e-commerce business.