Mulberry to shut Paris retailer amid drop in tourism

Mulberry is set to close its Paris store at 275 rue Saint Honoré after tourism declines in connection with the pandemic.

The British luxury label canceled the lease on the store and expects to close it by September but plans to open a new one in the French capital “as soon as international tourism returns”.

The brand said it expects the decision to provide £ 13.2 million, or £ 10.8 million after tax, which it will use to strengthen its liquidity position and support investment opportunities “in line with its strategic plans.”

Mulberry isn’t the first brand to rethink its physical retail space as retail reopens after the lockdown. In late June, US fashion giant Gap announced that it would close all of its stores in the UK and Republic of Ireland in an online-only shift by September 2021.

The decision was made after a strategic review initiated last year to “find more cost-effective ways to maintain a presence and serve customers in Europe”.

Just days later, Dutch retailer Hema announced it would close all six UK stores by the end of the summer as it pulls out of the country. Hema said the decision was made because it is “more focused on its core markets”.