Due to Coach’s lack of sales, they plan to close down 70 of their stores in North America by 2015.
According to CNBC, Coach’s shares have dropped by 11 percent, which is causing concern for the company.
Coach Inc. is a New York based retailer, selling clothes, accessories, footwear, and most commonly handbags and wallets.
The designer is having issues with its competitors such as Michael Kors Holding Ltd and Kate Spade. In order to match up to its competition, Coach is expanding its outreach to men’s wear, offering the same type of products they do for women for men.
“Most of the moves are not about giving up on total markets. They are in markets where we have more than one location. In all of the malls where we are closing stores, we have a wholesale location, either at a Macy’s, a Bloomingdales, or another partner,” said Victor Luis, Coach CEO, in an interview with Fortune. This is good news for lovers of the brand as they will still have access to the products, but it won’t be in an individual Coach store. In the locations where Coach is sold, there will be staff specifically supplied by the brand to ensure good customer service, which is hoped to drive sales.
Although Coach is seeing some changes, Luis is confident in the brand, and they seem to be making adjustments that will only benefit its sales, even if right now they aren’t doing so well.