European fashion retailer Charles Vögele Group is to exit its operations in Poland and the Czech Republic next year, as part as a critical review of its country portfolio.

The company also said the restructuring measures that have been undertaken in Hungary "are beginning to show success".

"We believe that Hungary will continue to develop positively," explained chairman Hans Ziegler.

Following the withdrawal from Poland and the Czech Republic, which will be completed during the course of next year, the company will have a presence in Switzerland, Germany, Belgium, the Netherlands, Austria, Slovenia and Hungary.

In August, Charles Vögele said its losses more than halved to CHF21.4m (US$3.5m) during the first half of the year, with improved margins offsetting a fall in sales.

The Czech Republic has also challenged Swedish fashion chain KappAhl, which last month said it will close its five stores in the country. It blamed the move on a deterioration in the market, which made it impossible to post a profit "within a reasonable timescale."