Michael Kors To Close 100 Stores
MICHAEL KORS has said that it would shut 100-125 stores as sales are expected to continue to fall in 2018.
The closure of over 100 full-price retail stores will take place over the next two years in a bid to increase profitability as the brand struggles to compete with the increasing pressure from discounting across the industry. Although the company saw success with handbag boom in the early Noughties, it has been unable to keep up with the demand of the constantly evolving accessories market instead losing out to rival brands such as Coach.
An inability to reinvigorate sales strategies has lead to underperforming full-price retail stores. The company’s chief executive, John Idol, admitted a lacklustre approach to the product and store experience and blamed “a difficult retail environment with elevated promotional levels” for the closures in a statement.
Despite investments in menswear and its online platform, Michael Kors’ flagship handbag lines have failed to buoy sales; shares have sunk to their lowest in over five years, to nearly an 11 per cent decrease, and sales in certain stores have seen a 14 per cent drop in the fourth quarter.