Coach Is Closing 70 Full Price Stores

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#121
abwd said:
I realize I am completely in the minority, but I don't think Coaches new business model is necessarily a bad thing. The outlets generate a great deal of revenue, but I think the vast number of people that shop at outlets cannot tell the difference between a MFF bag and a delete.

As others have said, the FP stores didn't generate the bulk of their income anyway given the overhead for some of those stores. It is a bold move for sure, but I do think they can create a stronger brand for an upscale market by making the bags more exclusive.

In terms of their mainstream customer, I think that the demographics of the mainstream customer is changing. Their are MANY more aging baby boomers with expendable income and fewer 18-22 year olds. I work in higher ed and the numbers of graduating students has declined and is not expected to increase over the next couple years.

I can't say Coach will turn around in 2 years, but I do think that strengthening their brand and restricting supply and access can create a stronger market in the long run.

And perhaps they are counting on continuing increases of sales in their Asia market will buffer earnings while they rebuild here.

I have been buying Coach for 23 years and I will keep my fingers crossed that they are successful. Without seeing a comprehensive strategy, it seems that it would be hard to really predict anything. And in fact, many people on this forum have complained about PCE's and Too many discounts.

I will to my best to help th succeed. LOL.
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ITA with all of this! People complained that fp stores never had sales, that bags went to the outlets too quickly and now that Coach is addressing both those complaints, people are still complaining.

It's sad but it seems to me that there are a lot of people who think that Coach should continue to sell their bags for 50-70% off and if not, they'll spend their money elsewhere. Coach is probably saying, "good riddance."
 
#122
I will continue to buy coach as long as the price is right for ME but at a discount. Of course. Lololololol. Sad or not. I aint payin FP, I dont roll like that. They can smoke all that stuff they want. I know their games. Lololol
 
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#123
abwd said:
I realize I am completely in the minority, but I don't think Coaches new business model is necessarily a bad thing. The outlets generate a great deal of revenue, but I think the vast number of people that shop at outlets cannot tell the difference between a MFF bag and a delete.

As others have said, the FP stores didn't generate the bulk of their income anyway given the overhead for some of those stores. It is a bold move for sure, but I do think they can create a stronger brand for an upscale market by making the bags more exclusive.

In terms of their mainstream customer, I think that the demographics of the mainstream customer is changing. Their are MANY more aging baby boomers with expendable income and fewer 18-22 year olds. I work in higher ed and the numbers of graduating students has declined and is not expected to increase over the next couple years.

I can't say Coach will turn around in 2 years, but I do think that strengthening their brand and restricting supply and access can create a stronger market in the long run.

And perhaps they are counting on continuing increases of sales in their Asia market will buffer earnings while they rebuild here.

I have been buying Coach for 23 years and I will keep my fingers crossed that they are successful. Without seeing a comprehensive strategy, it seems that it would be hard to really predict anything. And in fact, many people on this forum have complained about PCE's and Too many discounts.

I will to my best to help th succeed. LOL.
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I think you make some great points, and I especially agree with your statement about the majority of outlet shoppers. Whenever I go into the outlet nearest me, it is quite evident that the shoppers there don't know the difference. They're grab those MFF bags like crazy while the slightly higher priced deletes sit on the shelves. They see the price printed on the tag, and they think they're getting a deal, because they don't realize that the bag has never sold at that price. They have no idea they are paying for an inferior product.
 
#124
crazyforcoach09 said:
I will continue to buy coach as long as the price is right for ME but at a discount. Of course. Lololololol. Sad or not. I aint payin FP, I dont roll like that. They can smoke all that stuff they want. I know their games. Lololol
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I'm not 100% sure but I THINK you're expressing the sentiment that you'll pay what you're comfortable paying? If so, that's the stance I always take. If I think the item isn't worth the asking price, I pass. If I want said item, I'm buying it. Period.
 
#125
tonij2000 said:
I'm not 100% sure but I THINK you're expressing the sentiment that you'll pay what you're comfortable paying? If so, that's the stance I always take. If I think the item isn't worth the asking price, I pass. If I want said item, I'm buying it. Period.
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Yes. I will buy as well but NOT at FP. Dont want it or need it that bad. I am conmfortable gettin for less and will continue. I am not a FP payin type gal. Coach will still continue to sell less n I will get at that time.
 
#129
Twilight7474 said:
I thought this analyst view was kind of spot on - comparing this to when JC Penny tried this.

http://www.cnbc.com/id/101776782
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This is such a stop on article

Haven't we all been saying this for some time:

Lejuez also questioned the brand's decision to be less promotional in the factory channel, where "competition is as fierce as ever." Analysts have said the brand's outlet presence accounts for about two-thirds of its sales in North America, but that its emphasis on that market has damaged its brand equity over time.
 
#130
I don't know too much about the coach tactics they have employed over the last few years, as I haven't purchased a coach handbag in 7 years (just luggage pieces from the men's line). I recently came to this forum after searching for info on the borough. This forum stopped me from purchasing a few of the boroughs I wanted because I had seen that a few people had found them at outlets (even though I know it's rare and that they aren't officially in the outlets). This whole straight to outlet game is a huge factor as to why I haven't looked at coach for years. I purchased a couple luggage pieces about a year ago (SA insisted it would never go on sale) and I have now seen them on FOS for 70% off. That's frustrating, as a consumer I feel like I was taken advantage of.

I'm excited to see what Coach is going to do. If I see that this time they actually stay true to their word and keep the boroughs out of the outlets, I will purchase the 6 boroughs I have my eyes on. And perhaps I will become a loyal Coach customer in the future if they continue to design simple bags similar to the borough/urbane. If I know they won't be giving out promos/discounts right away, I'll be more willing to purchase at full price (if I think the price is right!). I kinda prefer purchasing bags that I know would rarely go on sale. This whole game of finding it at a much cheaper price is exhausting for me, even though I love a great deal! So I think their hope of gaining new customers might work, but it seems that they will be losing a lot of loyal consumers (most of you)...and I don't think I can purchase enough to bring up their sales by myself!

Saint Laurent did a lot of changing around these last few years, and I grew to become a very loyal customer. I think the new designs are insanely gorgeous and simple. People complained in the beginning, but ultimately a new fan base has allowed the company to survive.

Only time will tell! I wish them the best.
 
#131
crazyforcoach09 said:
Yes. I will buy as well but NOT at FP. Dont want it or need it that bad. I am conmfortable gettin for less and will continue. I am not a FP payin type gal. Coach will still continue to sell less n I will get at that time.
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Right on sister and I'm right there with you! I love all my Coach and will continue to buy but not at the FP......and lucky for me that I've scored enough Coach in the last year to last until I'm 80! ;)
 
#132
Banuuie said:
I don't know too much about the coach tactics they have employed over the last few years, as I haven't purchased a coach handbag in 7 years (just luggage pieces from the men's line). I recently came to this forum after searching for info on the borough. This forum stopped me from purchasing a few of the boroughs I wanted because I had seen that a few people had found them at outlets (even though I know it's rare and that they aren't officially in the outlets). This whole straight to outlet game is a huge factor as to why I haven't looked at coach for years. I purchased a couple luggage pieces about a year ago (SA insisted it would never go on sale) and I have now seen them on FOS for 70% off. That's frustrating, as a consumer I feel like I was taken advantage of.

I'm excited to see what Coach is going to do. If I see that this time they actually stay true to their word and keep the boroughs out of the outlets, I will purchase the 6 boroughs I have my eyes on. And perhaps I will become a loyal Coach customer in the future if they continue to design simple bags similar to the borough/urbane. If I know they won't be giving out promos/discounts right away, I'll be more willing to purchase at full price (if I think the price is right!). I kinda prefer purchasing bags that I know would rarely go on sale. This whole game of finding it at a much cheaper price is exhausting for me, even though I love a great deal! So I think their hope of gaining new customers might work, but it seems that they will be losing a lot of loyal consumers (most of you)...and I don't think I can purchase enough to bring up their sales by myself!

Saint Laurent did a lot of changing around these last few years, and I grew to become a very loyal customer. I think the new designs are insanely gorgeous and simple. People complained in the beginning, but ultimately a new fan base has allowed the company to survive.

Only time will tell! I wish them the best.
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A lot of people shared that they won't buy at FP for the same reasons as you. Hopefully, Coach will stop producing a million bags every month and eliminate the need to drastically cut prices and sell at outlets/fos.

I'm looking forward to the new business model because it's certain that the current one isn't working.
 
#133
Banuuie said:
I don't know too much about the coach tactics they have employed over the last few years, as I haven't purchased a coach handbag in 7 years (just luggage pieces from the men's line). I recently came to this forum after searching for info on the borough. This forum stopped me from purchasing a few of the boroughs I wanted because I had seen that a few people had found them at outlets (even though I know it's rare and that they aren't officially in the outlets). This whole straight to outlet game is a huge factor as to why I haven't looked at coach for years. I purchased a couple luggage pieces about a year ago (SA insisted it would never go on sale) and I have now seen them on FOS for 70% off. That's frustrating, as a consumer I feel like I was taken advantage of.



I'm excited to see what Coach is going to do. If I see that this time they actually stay true to their word and keep the boroughs out of the outlets, I will purchase the 6 boroughs I have my eyes on. And perhaps I will become a loyal Coach customer in the future if they continue to design simple bags similar to the borough/urbane. If I know they won't be giving out promos/discounts right away, I'll be more willing to purchase at full price (if I think the price is right!). I kinda prefer purchasing bags that I know would rarely go on sale. This whole game of finding it at a much cheaper price is exhausting for me, even though I love a great deal! So I think their hope of gaining new customers might work, but it seems that they will be losing a lot of loyal consumers (most of you)...and I don't think I can purchase enough to bring up their sales by myself!



Saint Laurent did a lot of changing around these last few years, and I grew to become a very loyal customer. I think the new designs are insanely gorgeous and simple. People complained in the beginning, but ultimately a new fan base has allowed the company to survive.



Only time will tell! I wish them the best.
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I feel the same way.
 
#134
momtok said:
Never even saw a commerical for it, but that's a colloquialism from my youth. ;) And yes, that is a concern for me too regarding Coach. I still think they've gone way too far with their outlets, and are too scared to pull back. They're apparently putting the reins on department store discounting, but stop it already with a new outlet in every new mall! The more outlets they open, the more merchandise they need to fill them, the more haywire they go with MFF. (Unless the leather on the MFF continues to consistently improve. I've seen glimpses of it ... the python leather and saffiano leathers used briefly in Campbell, some of the Park leathers, and some of the instances where it was clearly "left over" leather being used up on outlet products. But a lot of the MFF leather is still papery and plasticy.)

Then again, the "trick" of manufacturing directly for an outlet (and I don't just mean Coach) may come crashing down soon too. I often run searches on Google news, and I've seen more and more internet reports/blogs/mentions etc, about the fact that so many stores manufacture directly for their outlets, without the public realizing. ...... Well the public is going to end up educated sooner or later. Heck, I even found an article on the topic on one of the larger British news outlets, regarding a popular outlet mall in England.



That's my bigger worry, longterm. I'm pretty sure that Coach will survive one way or another, but for me it's always been the leather that I love. Thick, soft ... and even just the smell of the store, let alone the whiff you get when you open some of their bags. :love: ..... If they can't get enough revenue out of their customers, they might try to get it out of their leathers. :-/
.
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They are already downgrading the leather... And construction.
 
#135
Twilight7474 said:
I thought this analyst view was kind of spot on - comparing this to when JC Penny tried this.

http://www.cnbc.com/id/101776782
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This is what I've said before, they are going down a dangerous path, I hope it works out for them but I doubt it will, as long as they get 2/3 of their sales from the Outlet and don't tame the Outlet and discount beast without loosing most of their old customers then they'll never become a Premier brand.
 
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