Yep, I saw that with Phoebes when I went to the outlet, and when I expressed my dislike, the SA was commenting on how you can tell them apart from retail by looking at the logo. She was really talking all of this up in a positive light, but given that I was wanting the retail camo Taxi tote at the time, this behavior made me no longer want the Taxi totes period. I bought one tote from Bloomies on clearance, but that's it for me.
I also understand that Vevers may not be for everyone. I tried to tell my store that IMO
Coach generally has a conservative core customer who prefers classic designs, and some people I've talked to are actually quite offended by Vevers' designs and what they are based on. While they still offer a variety of designs in the stores, and the offending collection pieces are actually very limited, I think some people will not be able to "live and let live". But in any event, if someone doesn't like the products, that person should definitely move on to greener pastures! That's certainly what I did (and still do).
Regarding the dept stores, some of the stores I've seen have moved Coach over to a small corner, and MK has taken over.