American department store Macy’s is putting its online expansion to China on hold amidst the nation’s economic slowdown.
In May 2012, Macy’s signed a commercial and investment agreement with Chinese e-commerce firm VIPStore to sell private brand goods on the latter’s e-commerce site omei.com.
However, that agreement has been shelved while Macy’s takes more time to learn about Chinese shoppers, says the company’s spokesman Jim Sluzewski.
“While our company has interest in international markets over the long term, we have no current plans for an expanded presence in China,” he said.
Chinese consumers who want to purchase goods from Macy’s can order through the retailer’s US website which accepts orders and delivers goods to China.
China’s competitive e-commerce market has deterred many foreign retailers from further development. Earlier this year, another US department store, Neiman Marcus, has bowed to China’s luxury slowdown after closing its operations there.
The tough competition in China’s online shopping market has also prompted local player, NetEase Shangpin, a luxury shopping platform, to shut down just after a year of operation.
Bain & Company predicts that e-commerce spending in China will total US$539 billion by 2015, 50 per cent more than that of the US.