Dive Brief:
- Coach Inc. has announced it will close 70 stores in North America and warned of a continued slump in sales amidst fierce competition from the likes of Michael Kors and Kate Spade. The announcement comes ahead of its anticipated merchandise changes in the fall.
- The upscale retailer of bags, shoes and clothing said North American same-store sales could fall in the “high teens.”
- The New York City-based retailer had previously announced new design collaborations, improvements in quality, and jumps in its retail prices.
Dive Insight:
Coach is finding itself a little late to the game of reversing its downward fortunes. While the retailer is upping its game with much-anticipated new designs and improvements in quality, its North American sales trend indicates it may be a bit late. Analysts say the company is too big to attract a merger-and-acquisition deal. The only hope left for Coach is that its status as an icon can buy it the time it needs to make successful changes to its merchandise.