Paul Smith closes all stores in Germany

It would have been ten years in May that Paul Smith entered the German market. However, the label which just presented its Autumn/Winter 2024 collection at Paris Fashion Week, is now closing all of its German stores. The Berlin, Hamburg and Munich stores will all close at the end of January, as the London-based luxury brand confirmed to FashionNetwork.com. Paul Smith intially entered the German market in Hamburg in 2014.

The rental agreements for all three stores in Germany were negotiated before the coronavirus pandemic, when shopping habits were significantly different from those of today, according to the company.

Althought the stores were situated in prime locations such as Munich's Luitpoldblock and Hamburg's Hohe Bleichen, inflation and a reluctance to spend made the company's own brick-and-mortar business increasingly unprofitable.

"The decision to close stores is never easy, especially in view of the commitment and efforts of all our local employees. We are very proud of the wholesale distribution we have in Germany and continue to work with our valued partners in the market," a Paul Smith spokesperson told FashionNetwork.com.

The British luxury brand is no less short of wholesale partners as its founder is of creative projects. Following collaborations with Mini and Adidas, Paul Smith most recently designed an entire Picasso exhibition in Paris in spring 2023.

The group's turnover rose 7.7% in the 12 months to June 2023, hitting £212.5 million (248.4 million euros) with an increase across all of its major channels. The net loss for the financial year widened however, reaching £4.1 million (4.8 million euros) from £3.6 million (4.2 million euros) in the prior 12 months.

Paul Smith closes all stores in Germany

See also