Coronavirus has impacted businesses across China. Stores are being closed and the stores that do remain open are operating with reduced hours and seeing fewer shoppers. Roughly 150 of Capri’s stores in mainland China are closed. Nike has shut about half of the stores it owns in China. Adidas has shut a significant number of shops.
The companies join a growing list of global brands that have decided to limit operations in China, despite their reliance on the country for growth. All of Apple’s stores in China have been shut for now. Starbucks has closed more than half of its roughly 4,300 Chinese locations. Retailers are starting to worry that their businesses outside China will be affected as well if additional travel restrictions are put in place and there’s a drop in spending by Chinese tourists abroad. Such a dip in Chinese tourists seems inevitable as airlines cancel flights. American Airlines has suspended all flights between the United States and mainland China through March 27, while Delta Air Lines won’t fly from the United States to China through April 30. Hong Kong carrier Cathay Pacific has slashed flights to mainland China by 90%