Coach Is Closing 70 Full Price Stores

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#16
Alexa5 said:
If department stores can still include Coach in their Friends and Family sales, then a lot of people will just focus on shopping in those locations versus at Coach directly. I don't know many people that would wait around for a semi annual sale that *might* have the bag they want, when they can just go buy what they want on sale at one of many department stores.

Plus, a lot of people were excluded from PCEs anyway, so already had to take that approach.

Will they list somewhere the stores that are closing? I am curious....
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Exactly......as I just picked up the Warm Gray E/W Borough Town Tote from Bloomie's this morning for 50% off. It's still full price on Coach.com.

They've already closed the FP store in Atlanta at Phipps Plaza. The one at Lenox (right across the street) is still open.
 
#17
I only go to one fp store in Sacramento, always empty. My outlet is usually very busy and I was told they're expanding next month and opening a mens store. I hope they're still moving forward with this.
 
#18
I know at least one of my local stores isn't closing, as they just finished doubling their square footage by taking over the empty space next door to them in the mall. I haven't been in since they finished, but they said they would be carrying a lot of shoes and clothing, and more jewelry, in addition to the bags.
 
#20
It will shift its focus to better stores and flagships in its 12 best markets, which collectively generate half of its North American sales.

This will help, carry the nicer bags in all the FP store while the department stores continue to carry the less expensive bags. The local FP stores only carry the lower priced bags, same as Macy's & Nordstrom in the same malls. I have to drive quite a distance to the flagship store to see the nicer bags. Plus, whoever designs the floor/boutique displays company wide also needs to be fired, the stores look empty and uninteresting the way they are now.

I'm surprised they would close 20% of the stores though. Seems like a big cut.

Seems they are counting on the many changes to correct things within two years, and some probably will help like sending less bags to the outlets and having sales in FP stores where they should be.
 
#21
The thing is...if MK and Kate Spade are their biggest competitors, both have sales more than twice per year. If they truly want to compete with those brands, they are doing just the opposite. The biggest problem has always been the super quick turnaround to the outlets and FOS. And many people will wait for them in lieu of even PCE to get a bigger discount. The MFF versions of the FP bags and customers who do pay full price and are miffed when the bag is in the outlets 3 months later...this all contributes to the perception of the brand.

Someone mentioned that Dept stores include Coach in their F&F sales etc. But I believe Coach has control of over this. That is why they are excluded from most sales except for a few. And Brighton bags is never included because that they won't let the stores include their products even in "limited exclusion" sales. So I wonder then if Coach will crack down on Dept Stores too.


If not I will just buy my bags from there during their events instead of waiting 6 months on the off chance the bag I wanted 5 months ago is included.


Don't worry everyone they will see this new plan will fail and have to change it back for FY16. I just wish this policy wasn't rolling out when after 2 years they finally have bags I want.
 
#22
Alexa5 said:
If department stores can still include Coach in their Friends and Family sales, then a lot of people will just focus on shopping in those locations versus at Coach directly. I don't know many people that would wait around for a semi annual sale that *might* have the bag they want, when they can just go buy what they want on sale at one of many department stores.

Plus, a lot of people were excluded from PCEs anyway, so already had to take that approach.

Will they list somewhere the stores that are closing? I am curious....
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Totally agree on people shopping at department stores. It is crazy the include Coach so much...Macys has FP Coach on sale like ever other week!


I would be interested to see that list of stores too.
 
#24
Interesting. I was told a while back that the local FP store would become a flagship. I wonder if that is still the plan. I guess we'll find out sooner or later.
 
#25
I'm wondering if my fp will close. They just revamped it and have gotten less business thanks to that. It's completely dead in there. The SAs practically jump up your backside for a sale. Seriously, they stalk their few customers and chime in with opinions way too much. I'm always uncomfortable when I'm only in there to see what's new.
 
#26
NEW YORK (CNNMoney)
Upscale retailer Coach said Thursday it would close 70 stores over the next year and announced a bleak outlook for its business.

The stock tumbled 9%.

The move will shutter about one of every eight North American retail locations it operates. The company will also renovate key locations.

Coach (COH)'s handbags sell for several hundred dollars to mostly upper-middle class customers. Sales recovered after the Great Recession, but have since slumped, dropping 7% in the most recent quarter.

"The competitive landscape has shifted and we have not responded effectively," CEO Victor Luis told analysts Thursday.

Related: Coach is going out of fashion

So far this year, the company's stock is down nearly 37%. Its rivals, however, are seeing green. Michael Kors (KORS) is up 10% and Kate Spade (KATE)is up nearly 20%.

One bright spot for Coach is China. It said its market there would grow by 60% in the next four years.

First Published: June 19, 2014: 4:38 PM ET
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http://money.cnn.com/2014/06/19/investing/coach-outlook/
 
#28
This is interesting news, I wonder how many of the FPs in my area will close, if any. One thing that always bugs me is that the FP at the Mall of America doesn't seem to get any special treatment. Maybe they will actually try and do something with this store now. There are so many international visitors to the Mall that I don't understand why Coach doesn't do anything with that store, it doesn't stand out at all compared to the other FP in this market.
 
#29
ildera5 said:
I hope they don't cut too many here in Canada. It isn't worth it for us to buy online as we are hit with duty and shipping :(.
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Yea, we don't have the options up here with mega outlets etc. Nevertheless, I have been getting my deals at The Bay when they include Coach during FF sales etc. Even excluded bags from Coach capsule collection get included. I often wondered how on earth the Coach boutiques could compete when they are trying SO hard to keep certain collections "exclusive"?


But I digress...yea, it makes no sense to buy online & import Coach to Canada. First off, we get same msrp in cad dollars; why get dinged for duty & shipping???


This is sad for the company. I like Coach - not all their bags suit me but I like their brand very much right up there with many premier designer brands.
 
#30
shillinggirl88 said:
I heard a rumor that an outlet is opening near my home town August 1st. Would this be odd considering this news? It is a DEAD outlet - nothing like the one near my home now.
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There is a brand new outlet mall opening July 31, about 40 minutes from home, 20 minutes from work. It will have a Coach outlet. The closest outlet to me now is nearly 2 hours away.

I would not be surprised if our local FP closed. There are more SAs than customers whenever I've visited. It's in an indoor shopping mall with another indoor mall right across the interstate. Between the two malls, there are at least 4 department stores that carry Coach.
 
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