Coach Is Closing 70 Full Price Stores
- Thread starter Girl_LV
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Completely agree with your thoughts. I appreciated (for lack of a better word) all of my Coach bags, way back when. And for years, I only bought one or two a year - usually one in the Spring, and one in the Fall - and I used them to death! Now.... I have so many - so many still w/tags - that I seriously doubt I could use them all in my lifetime. And accessories......bags and bags of them.........
Oh.... and one point your forgot - The Purse Forum didn't exist, or pre-ordering bags before they hit the retail stores.... at least to my knowledge...
For awhile Coach could've blamed its losses on the economy but everyone from my Coach-hating Dillards SA (you can't blame her when she has to haul 5 long table loads of bags on 30% sale like corpses laid out to bury, not all Coach though, while the MK brand has a clean aisle to itself) to the following brutal comment from the Motley Fool.
"In order to try to rebuild its North American foundation, Coach has to pull back into itself and consolidate some of its strength. Last quarter, North American comparable sales fell 21%, dragging the whole business down like dress shoes on a swimmer.
As Coach kicks vainly against the tide, Kors is cutting through the water like a shark. Last quarter, Kors increased comparable sales in North America by 20.6%. The brand is just ripping market share out of Coach's hands, and yesterday's announcement is evidence of Coach's inability to move quickly enough in its reaction. The closings are going to cost Coach between $250 million and $300 million over the next few quarters..."
http://www.fool.com/investing/general/2014/06/20/coach-shutting-down-stores-dropping-forecasts.aspx
"In order to try to rebuild its North American foundation, Coach has to pull back into itself and consolidate some of its strength. Last quarter, North American comparable sales fell 21%, dragging the whole business down like dress shoes on a swimmer.
As Coach kicks vainly against the tide, Kors is cutting through the water like a shark. Last quarter, Kors increased comparable sales in North America by 20.6%. The brand is just ripping market share out of Coach's hands, and yesterday's announcement is evidence of Coach's inability to move quickly enough in its reaction. The closings are going to cost Coach between $250 million and $300 million over the next few quarters..."
http://www.fool.com/investing/general/2014/06/20/coach-shutting-down-stores-dropping-forecasts.aspx
The sad thing is, by trying to create scarcity and exclusivity, Coach is only going to alienate luxury, mainstream and outlet shoppers. The luxury shoppers will not ever believe that Coach is a luxury brand. There is too much competition in the luxury market and Coach simply does not have the status or cache to pull market share from premium brands in my opinion. Mainstream shoppers will be annoyed at the (very) small selection in department stores (dept stores will not buy much if they cannot mark the bags down at will) and will turn to other brands that have sales and that have a bigger selection. Tourist outlet shoppers will always be there but the savvy outlet shoppers will stop shopping at outlets if there are no deletes there, and without daily FOS sales, where are all the non-sold items going to go?
This plan reeks of desperation and is doomed to fail in my opinion.
This plan reeks of desperation and is doomed to fail in my opinion.
I personally don't understand why Michael Kors is such a big hit (their popular styles are too heavy or too LV wannabe for me, and that MK fob reminds me of the Paddington lock, again too heavy) - but seeing all the new Coach designs for the fall season I'm not all that worried (I do feel for the employees though since they can't wait it out like the rest of us). I'm seriously wondering if COH is a value stock. They do seem to be doing ok in the overseas market but I actually wonder if the new fall bags I like will appeal to them as they seem more American in style.
"For instance, Chinese sales rose 25%, and Chinese same-store sales rose at a double-digit rate and this despite the slowdown in the Chinese economy. International sales grew at 14% and 20% if you strip out the effects of currency moves. Sales of mens products were also strong, though specifics were not provided in the press release. And management maintained the dividend of Coach stock at 33.75 cents, offering a yield of 2.9% at current prices."
Full article - http://investorplace.com/2014/04/coh-coach-stock-kors/#.U6Sa3lJOVdg
"For instance, Chinese sales rose 25%, and Chinese same-store sales rose at a double-digit rate and this despite the slowdown in the Chinese economy. International sales grew at 14% and 20% if you strip out the effects of currency moves. Sales of mens products were also strong, though specifics were not provided in the press release. And management maintained the dividend of Coach stock at 33.75 cents, offering a yield of 2.9% at current prices."
Full article - http://investorplace.com/2014/04/coh-coach-stock-kors/#.U6Sa3lJOVdg
They need to get of that mess they smokin bc its messin thm up. Foe reallllllllll
Every store has a tracker that counts every time someone enters the store. Sales Associates can't do anything about it. Coach Corporate decides a sales ratio. So the store is expected to make a sale accordingly. So they decide for this discussion that SA should have a sale for every 10 warm bodies that walk into the store and they don't..... someones feet are held to fire. Window shoppers or people with children can really ramp the expectation up by corporate and yet SA's have no chance achieving success.
Coach will continue to have a difficult time because the middle class is losing their ability to buy. Middle class folks can't splurge a lot and the one area they will treat themselves is a luxury purse..not a fancy car, expensive clothes, or home furnishing....but a purse.. verified by research. This customer base is facing a harsh future in America. Unemployment is growing.
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we have one here in the newest outlet mall that was built about 15 minutes from me. the mall opened in november. whenever i go you never see alot of men on that side of the store - they are connected but have seperate entrances. the men i see are in the stores like nike,american eagle,adidas and under armour.
