Leading luxury retailer Coach has announced that it plans to close as many as 70 stores in North America. The company, which operated 351 full price stores and 193 factory stores in North America as of June 2013, had been facing criticism for diluting its brand through a high outlet presence. The closure of these stores will reduce its North America store count by 13% and the global store count by 7%. The company will also be combining 13 standalone men’s stores with existing women’s stores. This announcement comes on the heels of a quarter in which revenues from the company’s North America operations fell by 18% for the quarter with comparable store sales declining by 21%. The company management attributed this decline to the overall retail slowdown from weather and the Easter shift. While a part of the decline was attributable to the overall slowdown in retail spending, the rest of it was of a piece with the poor performance of Coach’s women’s handbags and accessories business over the last few quarters.
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