Haa­gen-Dazs clos­ing stores in some cities

China Daily (Canada) - - NEWS CAPSULE -

Ris­ing rents and lower profits have forced Gen­eral Mills Inc’s ice-cream brand Haa­gen-Dazs to close stores in sec­ond- and third-tier cities in China amid a slow­down in the ice-cream mar­ket, mainly due to a lack of in­no­va­tion and its in­abil­ity to keep pace with de­mand from in­creas­ingly so­phis­ti­cated Chi­nese con­sumers.

“We have ad­justed our stores in sec­ond and third-tier cities due to slower eco­nomic growth in those re­gions,” Haa­gen-Dazs said in an email re­ply to China Daily.

But the US ice-cream chain said a 5 to 10 per­cent ad­just­ment in store num­bers “is nor­mal”. The brand has 380 stores in 84 cities in China, ac­cord­ing to the email state­ment.

The com­pany’s in­ter­na­tional sales de­clined 10 per­cent in fis­cal year ended May 29, and its in­ter­na­tional seg­ment op­er­at­ing profit slumped 15 per­cent, mainly due to un­fa­vor­able for­eign cur­rency ex­change rates and slowing eco­nomic growth in China and Brazil, ac­cord­ing to its an­nual re­port.

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