Jun 1, 2009

Club 21 to shut iShop

LUXURY retailer Club 21 is pulling the plug on its iShop at Orchard Cineleisure - billed as the largest store of its kind in Asia - because of weakening sales. The flagship technology outlet, which employs more than 30 staff, will close by the end of this month.

The 10,000 sq ft store sold Apple computers and accessories, and also established an in-house Mac training centre. But the company issued a press statement on Monday saying it was shutting down this aspect of its operations.

A spokesman said the company will redeploy the 34 iShop employees wherever possible. Its human resource team will also help those who are laid off with career counselling and outplacement assistance.

When asked why iShop was closing its doors, the spokesman said: 'The global economic crisis has affected consumer spending across the board, correspondingly affecting both the retail and consumer electronics industry.' So it has decided to take the 'difficult but necessary' business decision to axe its Apple outlet to focus on its 'core strengths: namely, fashion and wellness'.

This year, it is opening 34,000 sq ft of retail space in the new Mandarin Gallery and Ion Orchard, bringing in brands such as Dolce & Gabbana, Giorgio Armani and Marc Jacobs.

iShop will cease being an Apple Premium Reseller but will continue selling third-party accessories until all stocks are cleared.

Data from information technology research agency IDC showed that the personal computer market in the Asia-Pacific, excluding Japan, declined 5 per cent from the fourth quarter of last year, and also 5 per cent year-on-year in the first quarter of this year.

- The Straits Times

No comments:

Post a Comment