(Yicai Global) Dec. 6 -- Macy's shuttered its flagship store on Alibaba's premium e-commerce platform Tmall bringing an end to the US retail giant's presence in China.
The store closed on Dec. 4 and the Cincinnati-based firm will cease all operations in the country by the end of this month, Beijing Business Today reported. The company advised Chinese consumers to log-on to its US site if they wish to purchase goods.
Macy's invested USD15 million to become a shareholder in Chinese online shopping platform Jiapin in 2012, which has since gone bankrupt. It also opened a direct-sales store in Shanghai, which then closed in 2015, ending the firm's physical presence in the country.
Sales promotions are a typical feature of the Chinese e-commerce sector, while in the US prices online normally match those found in-store, one analyst said, adding that this differentiation was a major factor in Macy's failure to gain a foothold in the market.
The rise of e-commerce has made for an unfavorable investment environment for traditional shops and department stores, and Macy's closed 68 brick-and-mortar locations around the world last year involving 10,000 layoffs.