Laura Ashley Holdings plc (LON:ALY) shares slipped on Monday morning amid reports that the curtains and sofas retailer is to close 40 more UK stores in order to focus on growing its presence in China.
The £22mln company has already closed 40 UK stores since 2015, seen by many as a shrewd move by its owner, Malayan United Industries (MUI), given the high street’s struggles over the past few years.
READ: Laura Ashley profits plunge
There are currently 160 Laura Ashley shops up and down the UK, but MUI’s new executive chairman, Andrew Khoo Boo Yeow, wants to trim that to 120, although the remaining stores would be expanded.
"It's more about showcasing the brand," he told the Press Association.
"It doesn't really matter if [customers] buy online or offline, we just want them to get inspired. It's a challenging environment and it could become more challenging.”
Instead, Khoo said he wants to take the brand into Asia “in a much bigger way”.
"We have a regional office in Singapore [that is] focused purely on ecommerce into China.
"Once we get a significant foothold in digital retail in China, we can look at the physical stores' rollout."
Shares fell 7.1% to 3p on Monday morning.