River Island to retreat from Turkish market

The young-fashion chain opened in Turkey through franchise partner Alshaya Group, but Alshaya has decided to close all four River Island shops in the country as part of a review of all its operations in the country.

The stores, which are small units and not representative of typical River Island stores, are said to have been performing poorly as the Turkish economy has slowed. Rental costs have risen and the business environment has become more difficult for international companies, which has also influenced the decision.

River Island has already closed two shops in Istanbul: the store in Cehavir shopping mall in the Mecidiyeköy district and in the stinye Park shopping mall in the stinye area. The closure of its remaining stores has now been planned.

Turkey is seen as a particularly difficult market to operate in because of the complex system of quotas on goods from the Far East, which means that fashion retailers need to source separately for their Turkish stores.

River Island chief executive Richard Bradbury said: “It’s not that Turkey isn’t an interesting market because it is. But the complexities of operating in the market make it very difficult.”

The retailer is continuing to develop its international operations and expects to open its first Russian store in Moscow next month.