Coach retagging their bags ... WWD article

  1. From "Holiday Report Card: A Key Week Lies Ahead In Lackluster Season," WWD

    http://www.wwd.com/issue/article/121120?page=4


    "Coach has endured a rough season with its stock price slipping and some surreptitious marking down. Certain products have been retagged at lower prices without advertising the changes, as a strategy to maintain a full-price posture. "It's kind of a secret. They don't want to look like they're not selling bags by putting them on sale, so we retag the items," said one employee, who requested anonymity. The source said most of the markdowns were between 25 and 30 percent. According to a company statement: "Coach did reprice a few of our handbags styles — which are to be discontinued after holiday — in order to be consistent across channels. We have taken selective corporate price changes from time to time in the past.""
     
  2. I really don't get it. If the sales are down and they really want to sell more, why keep the price markdown secret? It's as if the shoppers won't become aware of it.
     
  3. I suspect it's because having a public sale or markdown lessens the designer image of the company.
     
  4. I also think if they advertise a "sale", going forward people may hold off on buying b/c they are waiting for the next sale. Like, why bother if its only going to be 25% off in a month? This way the regulars keep paying "full price" & new customers might be pleasantly surprised to see a lower price than they were expecting.
     
  5. I think Coach has had to many price increases and it is starting to catch up with them.
     
  6. I agree..I think that's what it is, but I think this happens anyway with the outlets. I live close to a Coach outlet, and after seeing recent bags show up there at a discount, it's hard to shop at the boutique unless it's a bag that I'm afraid will never make it to the outlet.

    From what I've seen, I think we'll continue to see more and more bags go to the outlet on a fairly regular basis, so the details will continue to be there for bargain shoppers.
     
  7. I agree and too many styles that are out of a lot of younger people price range and styles that are not apleaing to a broad range of people - the Bleeker Line is a good example
     
  8. I was always told it was only a markdown for the holidays. It wasn't really a secret while it still maintained the whole "not a sale" image.

    It's not a big deal to me. As long as the bag I bought is not marked down like two days after I buy it then who really cares? Clothing stores do it when stuff goes on sale.
     
  9. i have to agree, their price increases have caught up
    however, their leather bags are some of the best out there and should be comparable to others. i think its killing them to not keep expanding the legacy line.... get that stuff out there, some new designs.... keep it moving alot of times, they are running out of stock of certain bags that would definitely sell way more too....

    i think they are in a tough position, do you keep doing PCE's, keep all of your outlets going?

    these are just some of the thoughts going thru my head as i read that....
     
  10. Dear Coach,

    STOP INCREASING YOUR PRICES, THEN!

    Love, Aimee
     
  11. They just missed a sale by doing this! I had my PCE card and Xmas Coach certs and wanted to cash in yesterday (I couldn't wait!!)...it was between the Legacy Thompson hobo and the Bleecker large duffle, although my original intent was to only purchase the Thompson (t was on hold for me). I already have the Bleecker large duffle in magenta and LOVE it, and the minute I walked in the store and saw the rose duffle, I fell in love with that too. Had I known that they reduced the price back down to $314 from $448 (after raising the price back to $448 on Xmas day), I would have purchased the duffle over the Thompson...or in addition to the Thompson. However, I only discovered that after the drive home, and today it's back up to $448. BUMMER! I called, and they told me it was a Xmas special only. TOO BAD!!! They totally lost a sale!!! If they had advertised this sale, they would have sold TWO bags yesterday and not one!!! Not only do I find their database a big joke, but their marketing strategies leave a lot to be desired too!!!

    I totally agree with the other poster. It's hard to shop at the retail stores when so many great retail bags show up at the outlets at a much cheaper price. Probably my best purchase over the holiday was the Legacy Mandy Courier at the outlet for a steal of a deal!! Almost every time I go to the outlets, I find a great leather bag (I'm not into the signature stuff much) that was either a customer return from a retail store or shifted over, etc. My Mandy was less than half the $798 retail price with the 20% plus 10% holiday discounts... yet another reason not to shop at the retail stores! Good thing I don't live next door to an outlet, lol!
     
  12. aaargh....Coach is making me so blasted mad with their craziness! Over the holidays, I found SO many fricking Legacy bags at the outlets...at such deep discounts it made me so mad when I paid full retail pop for mine because Legacy was supposed to be so "special"! (Worked out great for my mom and sis as they both got Coach for Christmas)

    It makes your head spin how fast new bags make it to the outlets and with so many people peddling outlet buys on eBay, Coach is starting to lose its luster for me.

    Now, this non-sale "sale" business....are they TRYING to lose customers? :cursing:
     
  13. I agree! This also happened to me with the Chelsea laced Abbey hobo, which I had bought during the earlier PCE, but then discovered it for $400 at the factory.

    By the way, I heard that at least some outlets will get some Bleecker (mostly signature) in on Jan. 2...now that's crazy! But I was told they are clearing their winter stock that's left over.

    If they would lower (or quit elevating) their prices and not try to run with the big dogs (when they can't compete), they would be better off!! They should be able to see what their bags are truly selling for (or NOT)! This is why they end up at the factory stores. There are very few people in my retail Coach stores at any time of the year other than at the PCE events. I was told the sales were not that great in the stores this past year. Get a clue, Coach!! Perhaps they should at least consider rethinking their marketing strategies...and quit elevating the prices!!

    The price fluctuation for certain items is another thing that is really annoying me. It makes me not want to buy anything from them and just wait to see if it shows up at the factory later on. I also wonder how this affects sales for chains like Macys??? I just discovered that their Thompson hobo is still $698 online and not the $598 at the retail store. I know they lowered the prices on that entire Thompson line a while ago, but I guess this did not change the dept store stock prices.

    Speaking of the Thompson line, I don't find the quality as nice as the Legacy...lining seems a bit thinner, and the strap(for the hobo at least) is not finished that well underneath. It looks better than the Bleecker duffles, but worse than the Legacy bags or Chelsea laced Abbey that I have. I definitely would not have paid the original Thompson prices, and probably not the current one if I had not had the certs and the PCE card. Don't get me wrong, though, I love the bags..but just that the price should reflect what you get!
     

  14. ITA -
    I hated the fact that I saw coach legacy shoulder bag in pond at the outlets 2 weeks ago. "Sold out" ?? yeah right!
     
  15. were there a lot of them? customers do do returns.