Le Chateau plans to shut 40 stores by 2019

19 April 2016 (Last Updated April 19th, 2016 18:30)

Montreal-based apparel retailer Le Chateau intends to shut down around 40 more outlets across Canada over the next three years.

Montreal-based apparel retailer Le Chateau intends to shut down around 40 more outlets across Canada over the next three years.

The firm has been closing underperforming stores while renovating some outlets that have been making profits as it reconsiders its strategy following an increase in online sales.

Last year, it shut 11 stores and plans to close 14 more this year.

Over next three years, it intends to have around 170 stores, which will be the least since 2007.

"Having all this real estate isn’t necessary anymore."

It began closing stores four years ago.

With the latest move, the retailer has not divulged how many of its 2,400 employees would lose their jobs, reported Torontosun.com.

It expanded in the 1990s, but with the growth of online shopping, its physical stores have been facing problems in attracting consumers such as several retailers.

Le Chateau senior vice-president for sales and operations Franco Rocchi was quoted by the website as saying: "Today, in the post-digital world, your brand is as close to everybody as their cellphone, so having all this real estate isn’t necessary anymore."

For the 12 months ended 31 January, the retailer made a loss of $35.7m when compared with a loss of $38.7m in the previous year.