E-commerce

Le Chateau closing 3 U.S. stores, ready to launch e-commerce site

(THE GAZETTE) - Le Château Inc. is planning to close its three underperforming U.S. stores, even while continuing to sell to Americans through a new e-commerce site, the company said Wednesday.

While the Montreal-based retailer said it will open up to eight stores in Canada this year, Le Château plans to grow internationally only through franchising and a soon-to-be launched e-commerce site.

“Our international expansion strategy is really not going to be through bricks and mortars,” said Le Château president Emilia Di Raddo, following the company’s annual general meeting Wednesday.

The website, to be launched in October, will target customers in both Canada and the United States, even as Le Château gradually closes its U.S. stores when their leases run out. The new online sales site will be accompanied by a print and online marketing campaign, she said.

Le Château’s new sales strategy comes at a time when the retailer, once known for its “cheap chic” fashions, is in the process of rebranding its lines to an older and more upscale customer base. Delayed because of the recession, the company is moving ahead with plans to attract a broader, older and more affluent customer base.