COACH to pull out of 250 department stores
Coach plans to pull out of 25% of department stores that feature its goods, corresponding to about 250 stores in all, CEO Victor Luís said last week.
Luis first indicated the possibility of such a move in April as part of Coach’s concerted effort to cut down on promotions and sell at higher price points.
The luxury retailer also reported this week a fiscal fourth quarter net sales increase of 15% year over year to $1.15 billion, and a fiscal 2016 full year sales increase of 7%.
Coach has renovated renovated more than 35 shop-in-shop locations to its new “modern luxury” approach, which Luis told analysts has had a “significant impact versus balance of doors.” He also said the more upscale approach will eventually dominate its department store presence.
“While we understand that consumers may use department stores for trial and shopping across brands, the high level of promotional impressions created negatively impact our long-term brand health, while generating confusion across channels,” Luis said. Looking foward, he sees the fiscal year ahead as the last chapter in the retailer’s “heavy-lifting phase.”