Dive Brief:
- Coach is laying off all part-time employees working less than 30 hours per week at Canadian locations with more than $1 million in annual sales.
- The unconventional move is designed to aid the luxury retailer in building stronger relationships with clients.
- Coach has closed 56 stores in North America this year in effort to solidify its brand positioning. The company currently has 36 stores in Canada.
Dive Insight:
In a move that runs counter to the typical retail staffing strategy, Coach is slowly laying off many of its part-time workers in Canada. Employees at stores making more than $1 million per year are being given six weeks’ notice and being told that the luxury retailers wishes to concentrate on full-time employees who can help the build strong, loyal customer relationships.
Coach's move cuts against the usual trend in retail: Most retailers looking to cut labor costs opt to add part-time workers at the expense of full-time jobs—or at least those in the United States, where companies aren’t required to contribute to health care for those working less than 30 hours per week. Coach didn’t elaborate on its timeline for layoffs, except to say that they are in line with its service goals.