Coach Plans to Close 70 Stores in North America
Posted on June 21, 2014
Coach Inc. has announced it plans to close up to 70 stores of in North America. The company has over 500 stores in North America. Falling sales are blamed for the planned store closings.The Wall Street Journal reports that same-store sales for the retailer fell in the "high-teens" for its fiscal year. Shares of Coach's stock fell 11% on the news. CNN/Money reports that Coach sales fell 7% in its most recent quarter.
Reuters says Coach has been struggling against Kate Spade and Michael Kors. Kors has been very successful with his recent international expansion. Reuters also says Coach announced it plans to start holding sales twice a year. Sales are definitely a way to drive more customers into stores, especially in this continued weak economy.
In an interview with Fortune, Coach CEO Victor Luis. says the company plans to focus on its flagships at 12 major North American markets. The company also plans to add its own sales and customer service staff at its shops inside department stores. Coach is also seeking a new location for a flagship store in New York City.