Mulberry is to close its Paris store at 275 Rue Saint Honoré following a drop in tourism linked to the pandemic.
The British luxury label said it is terminating the lease of the store and expects to close it by September, but plans to open a new one in the French capital “once international tourism returns”.
The brand said it expects the decision to generate 13.2 million pounds, or 10.8 million pounds after tax, which it will use to strengthen its cash position and support investment opportunities “in line with its strategic plans”.
Mulberry isn’t the first brand to rethink its physical store estate as retail reopens following lockdown. At the end of June, US fashion giant Gap announced plans to close all its stores in the UK and Republic of Ireland by September 2021 in an online-only shift.
The decision came following a strategic review launched 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 of its UK stores by the end of the summer as it withdraws from the country. Hema said the decision came as it places “a stronger focus on its core markets”.