Is Le Chateau about to go under?
It looks like another Canadian retailer has their back up against the ropes. Le Chateau is the latest retailer to find themselves losing market share and experiencing declining sales. Earlier last week, shares of the Montreal based clothing retailer plummeted nearly 19 per cent after the company reported its second straight quarter with a drop in sales. Sales during that period were $68.3 million a number down almost 10 per cent from $75.7 million the year before.
It is becoming increasingly difficult for once large scale Canadian retailers to keep their brands successful in the current competitive Canadian retail landscape. With 226 Le Chateau stores in Canada, one in the U.S. and five in the Middle East, one could expect that stores might start closing, although we have no confirmation to the fact. As of now, it looks like Le Chateau will continue to fight, and we hope they do as it’s getting harder and harder for Canadian retailers.