This week in fashion: China may continue to struggle with a luxury sales slump, while a major retailer shutters its flagship in San Francisco.
China luxury sales fall flat
Despite a few luxury retailers showing signs of recovery this year, a new report by Bain & Company might indicate otherwise. According to its latest China Luxury Report, luxury sales will likely struggle at least in the first half of this year. “Following a turbulent 2024, we expect China’s luxury market to continue its downward trend through the first half of 2025, with a cautiously optimistic outlook emerging in the latter half of the year, resulting in an overall flattish performance for the whole year,” Weiwei Xing, a Greater China-based partner at Bain & Company, said in a statement.
Why this matters: Luxury sales in China have been integral to the bottom line of multiple luxury brands such as Burberry and Gucci, both of which pointed to a sales slump in China for its drop in profits. The Bain & Company report additionally notes that Chinese luxury experienced a 18%–20% YoY decline in 2024.
Bloomingdale’s shutters store in SF
Bloomingdale’s is closing its flagship store in San Francisco amid rising crime and a significant drop in sales. “We are saddened to confirm that Bloomingdale’s will officially close its doors in Union Square, San Francisco,” Bloomingdale’s said in a statement. “This vibrant city has been home to the brand for nearly two incredible decades. While we are committed to this decision, Bloomingdale’s doors will remain open until late spring 2025.”
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Why this matters: Bloomingdale’s joins a number of key retailers such as Nordstrom, Adidas, Anthropologie, and The North Face that decided to shutter major stores in San Francisco. Most of these closures follow a steady increase in retail theft in the city.
Analysts are hopeful about Burberry
Although things have been somewhat glum for Burberry in 2024 as it battled declining sales and waning consumer interest, analysts are hopeful that the brand might be in for a turnaround this year. According to a Reuters report, many investors are banking on new CEO Joshua Schuman’s vision to rebuild the brand with a renewed focus on the US market and bestselling products such as the Burberry Trench Coat.
Why this matters: This ray of hope follows a tumultuous 2024 for the brand during which CEO Jonathan Akeroyd was abruptly replaced by Schulman. Prior to that shift, the company’s shares fell 17% in London after poor sales in Q1.