Fashion retailer C&A is planning to close its division Canda International. The subsidiary, which specialises in formal wear, has seen its sales suffer from the strong rise of casual fashion.
“Necessary transformation”
Recent years have a decline in formal wear and a rise in casual fashion – trends that have been further reinforced by the coronavirus pandemic. As a result, the prospects for Canda International, which is dedicated to coordinating the production of formal clothing, are unfavourable. The plan to close the Germany-based subsidiary may affect up to 113 employees.
“A proposed closure is never easy to consider. We are committed to working closely with our social partners, moving through this process together, in line with legal requirements and with the utmost respect for our potentially affected employees,” CEO Giny Boer C&A Europe explained.
She wants to further expand C&A’s position as an omnichannel retailer: in 2021 online sales grew by 54 %. “The changes in the retail market environment reinforce the need for transformation”, Boer continued. Yet she also stresses the importance of physical stores, which are still the cornerstone of the retail approach. The retailer recently revamped nearly 400 stores and more store updates are planned for later this year.
