Apple Closes First China Store as Sales Struggle, Expansion Slows
Apple is closing its retail location in Dalian, China, marking a significant shift in strategy for the tech giant as it navigates a challenging market and a broader slowdown in global retail expansion. The closure, announced on July 28, reflects a changing retail landscape and comes as Apple seeks to revitalize sales in the world’s second-largest economy.
A Retreat in a Key Market
The Apple Store located in the Parkland Mall in the Zhongshan district of Dalian will shutter on August 9. According to a company statement, the decision stems from a shifting environment at the shopping complex, with several other retailers also departing. This marks the first time Apple has closed a retail store in China since establishing a presence there. Despite the closure, Apple maintains 56 stores across Greater China, representing over 10% of its global footprint of more than 530 outlets.
“We’re always focused on providing an exceptional experience for all of our customers, both online and at more than 50 Apple Store locations across Greater China,” the company stated. “Given the departure of several retailers at the Parkland Mall, we have made the decision to close our store there.”
Economic Headwinds in China
The closure occurs against a backdrop of economic pressures in China. The country is currently facing deflationary pressures as consumer spending weakens and global tariffs impact exports. Recent data indicates that retail sales growth has fallen short of expectations, and housing prices experienced a faster decline in June. This challenging economic climate is undoubtedly influencing consumer behavior and impacting sales for companies like Apple.
The Dalian location is one of two Apple Stores in the city, with the Olympia 66 shopping complex location remaining open, just ten minutes away. Employees at the closing store will be offered opportunities to relocate within the company.
Sales Dip and Expansion Plans
Apple’s sales in China decreased by 2.3% to US$16 billion (S$20.6 billion) in the second quarter, which concluded on March 29 – falling short of analysts’ predictions of US$16.8 billion. Despite this recent dip, Apple is actively pursuing expansion in other areas.
A new store is slated to open at Uniwalk Qianhai in Shenzhen on August 16. Further expansion is planned for Beijing and Shanghai over 2026, as reported by Bloomberg News. Apple also recently opened a store in Anhui province in January.
Global Expansion and Shifting Strategies
Beyond China, Apple is continuing to expand its retail presence globally, with upcoming stores planned for Detroit, the United Arab Emirates, Saudi Arabia, and India. Recent openings include a location in Osaka, Japan, on July 26, a flagship store in Miami in January, and its first store in Malaysia in 2024.
However, the pace of overall retail expansion has slowed since the onset of the pandemic. Apple is increasingly prioritizing its online retail store, particularly in markets like India and Saudi Arabia, and is focusing on updating existing locations rather than aggressively opening new ones. The company is also demonstrating increased selectivity in lease renewals.
Notably, Apple announced plans to close a store in Bristol, England, on the same day as the Dalian closure. Additional closures are planned for Partridge Creek in Michigan, US, and Hornsby near Sydney, Australia.
Parkland Mall’s Broader Challenges
Apple is not alone in its departure from China’s Parkland Mall. The majority shareholder of the complex assumed full operational control earlier in 2025, and other prominent brands, including Coach, Sandro, and Hugo Boss, have chosen not to renew their leases in recent years, signaling broader challenges for the shopping center.
