MCM exits department store business
Mode Creation Munich (MCM) of Sungjoo Group is to close its department stores in South Korea citing poor performances as the reason.
MCM has seen negative growth from its domestic department store business since last year, an indication of a softer consumer sentiment, reports Korea IT Times.
Contrastingly, its duty-free business has been growing remarkably, boosted by foreign tourists, mainly by Chinese. It says the share of its duty-free business in total sales has exceeded the department store business’ share.
MCM, which has a total of 280 stores worldwide including 70 in Korea, says it will strengthen its overseas businesses particularly in China.