In the coming weeks, New Balance will close the 22 physical stores that it has spread across Portugal and Spain, reports this Wednesday, El País, which allows the closure to take place even before the current Christmas campaign.

According to the Spanish newspaper, this week, at least in Spain, there are articles with promotions of 40 and 50%, and from next Monday, discounts will reach 70% in all stores of the sports brand .

The brand, which wears FC Porto in Portugal, intends to focus on online commerce, a strategy that will not only affect the entire network of the Iberian Peninsula, but should also extend to the whole of southern Europe, where a New Balance does not it is only more represented, as it is stronger. The plan will be to centralize all European operations in the Netherlands, according to the Spanish press.

“It could be a pilot test to boost the profitability of the manufacturer’s direct e-commerce and save on wages and income”, indicated sources close to the multinational sports clothing and footwear in Boston, in a statement to El Día de Valladolid that, earlier this week , revealed that the closing of stores in Portugal and Spain before the end of the year was being studied by the company.

According to the Spanish publication, the decision threatens more than 500 direct jobs, but the social impact will be much greater, reaching a universe of 1,500 workers (direct and indirect) and 30 companies, with logistics, security, cleaning services, merchandising, among others.

Negócios contacted New Balance in an attempt to understand the impact of the closure in Portugal, where it has stores in Lisbon and Porto, but without success.

With the bet on the digital channel at the expense of physical stores, the company, led by Joe Preston, seems to be heading in a direction contrary to its main competitors, including plans to open more spaces for sale to the public.

As an example, as a reference in the Spanish press, Nike is betting on direct contact with the consumer and announced new own stores and a reduction in the network of multi-brand distributors, as it did, in 2019, with Amazon; While Adidas has also invested in physical stores in strategic lines.