Retailer gets goose pimples about China store amid tensions

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Retailer gets goose pimples about China store amid tensions

 


Model Jodie Kidd prepares backstage before a Canada Goose event in London
Model Jodie Kidd prepares backstage before a Canada Goose event in London

Canada Goose Holdings is delaying the opening of its flagship store in Beijing, as escalating tensions between China and Canada triggered by the arrest of Huawei Technologies’ finance chief threaten its ambitions in the world’s second largest economy.

The Toronto-based maker of premium parkas said on its Weibo social media account late on Friday that it was postponing the store’s debut, scheduled for Saturday in Beijing’s trendy Sanlitun district, “due to construction reasons”.

The posting came after Weibo social media users threatened to protest the opening.

The company has been targeted for a boycott of its brand on media platforms since the arrest of Huawei’s Meng Wanzhou’s, given Canada Goose’s prominence as a Canadian label.

Canada Goose shares fell as much as 4.9pc in Toronto on Friday, the sixth decline in seven trading sessions since news about Meng was made public the week before last. The stock is down about 24pc since then.

The company didn’t give a date for when the store would open. When contacted for a comment, it reiterated that the delay was due to construction and said it looked forward to launching in the near future.

“Canada Goose continues to move forward with our expansion plans in China,” the company said in a statement.

The timing could not be worse for the luxury jacket maker, which just last month launched a splashy entry into greater China with a store in Hong Kong and plans for the Beijing flagship, betting that the country’s growing middle class is ready to spend on its Arctic-ready parkas costing CAD$1,000 (€661) or more.

The detention of the Huawei executive has sparked a selective anti-Canada backlash in China, and other Canadian brands like IMAX and Tim Hortons have so far been spared calls for a boycott.

China’s spy agency has also detained two Canadians in the past week, which some view as retaliation for Meng’s arrests, although China has deflected questions about any links.

Bloomberg

Sunday Indo Business

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