US retailer Abercrombie & Fitch plans to open new stores in China – including a flagship in Shanghai.

While the retailer plans to cull its network in the US by closing up to 70 stores, it says it will open 16 new stores overseas, of which seven will be in China.

The retailer has seen its comparable-store sales increase 35 per cent in 2013 in China, where it already has seven stores.

Abercrombie & Fitch CEO Mike Jeffries said 2013 was a challenging year, but he is optimistic about the company’s prospects this year.

“There is much work ahead of us, but we are encouraged by the progress we are making as we continue to aggressively execute against our long-range plan objectives, which we believe will generate meaningful improvements in our business and create significant value for shareholders,” said Jeffries.

The company also plans to accelerate the presence of its Hollister brand in Japan as it is performing well there.

Abercrombie & Fitch has 843 stores in the US and 163 in Canada, Europe, Asia and Australia across its Abercrombie & Fitch, Abercrombie and Hollister brands.