Li Ning to close about 600 stores
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Chinese sportswear company Li Ning said it will shut down underperforming stores to streamline its distribution system, which will affect about 500-600 stores, the Southern Metropolis Daily reported.
The move comes under heavy pressure from shrinking orders for next year. The 2011 orders for apparel and footwear products have declined by more than 7% and 8% respectively, although retail prices have increased by more than 8%.
Li Ning promises to lift the commission by 2%-3% from current 57%-58% to stabilize the distribution system, one of the company's partners revealed.
Goldman Sachs said in its report that Li Ning remains mired in difficulties caused by its vague position and weak sales.
Li Ning lost 20% of its value in the recent five trading days on the Hong Kong exchange market as it fell 1.16 percent to HK$16.98 ($2.18) yesterday.
China's business press carried the story above on?Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
