by Apparel Resources News-Desk
14-March-2019 | 2 mins read
India’s leading fashion portal Myntra has shut its two offline stores in Mumbai and Bengaluru. The Walmart-owned e-tailer has closed a Mango store in Mumbai and its flagship store of private brand Roadster in Bengaluru, as per The Economic Times.
According to two sources familiar with the matter, the Roadster and Mango outlets were making losses. “Sales were weak compared to the high rentals,” said one of them.
In 2017, Myntra entered offline retailing with the Roadster outlet in Bengaluru, and same year, Mango in partnership with Myntra opened its store in Mumbai’s Palladium Mall.
The closure of the loss-making stores is part of its change in strategy after Walmart bought parent Flipkart for US $ 16 billion in May last year, the sources said. Although, Myntra is going forward with its brick-and-mortar initiatives.
“The information on offline business isn’t correct. While we do not comment on our strategy for opening or closing stores in particular locations due to competitive reasons, Myntra continues to move forward in its strategic direction including through franchise offline stores as per the plan.” – Myntra spokesperson.
The newspaper also reported that a signboard outside the Roadster outlet in Bengaluru’s Indiranagar area reads that the 4,850 sq ft property was available for rent. The neighbouring stores’ executives have confirmed that said Roadster closed in late February. The Mango store in Mumbai was closed about two weeks ago, said a source familiar with the matter. Various mall executives said Myntra had been in talks with them for opening Esprit-branded outlets but they are not returning calls and not responding to emails.
“Now, they won’t open Esprit outlets and they are not signing new leases for any of the brands,” said one person familiar with developments at Myntra. Myntra had spelt out plans barely nine months ago to roll out 100 physical outlets — half of them of Roadster and the rest of HRX, Mango and others — to tap the complimentary omni-channel initiatives.