(Yicai) March 2 -- Guess is to close all of its online and offline stores in China at the end of this month, according to text messages the US fashion retailer has sent to customers in the country.

The move is part of a strategic adjustment and Guess will take a new approach to the Chinese market in the future, its parent company Authentic Brands Group said recently. New York-based ABG did not disclose any specific details.

Guess faces high operating costs in China and has failed to timely establish a presence in emerging channels, such as livestream e-commerce and social commerce, resulting in relatively weak online capabilities that have deepened the brand’s challenges, according to market analysts.

Founded in Los Angeles in 1981, Guess offers a wide range of products, from clothes and footwear to accessories and perfumes. It entered the Chinese market in 2007 and quickly gained popularity among younger shoppers, peaking at over 250 brick-and-mortar stores. But in recent years, with the rise of local brands and changes in consumer trends, Guess has been exiting core commercial districts, and its offline presence has shifted toward outlet stores.

In January, ABG and Guess announced they had completed a restructuring, with Guess’ core intellectual property held by a new joint venture controlled by ABG with a 51 percent stake. Guess was then delisted from the New York Stock Exchange.

ABG operates mainly as a brand-IP manager and licenser rather than a traditional apparel retailer, and owns dozens of brands such as Reebok, Champion, and Forever 21. When ABG acquires a brand, it typically divests heavy direct-retail assets and shifts to regional licensing. Forever 21, for instance, was relaunched in China through local partners leveraging e-commerce channels.

The closure of Guess' stores in China is likely a key step in a similar asset-light strategy, analysts noted.

Editor: Futura Costaglione