Ralph Lauren has announced that it will be closing some of its stores and cut jobs in an effort to lower costs and increase profits.
According to an article on The Fashion Law, Ralph Lauren announced Tuesday that the company will be closing some stores and be cutting jobs in an effort to lower company costs and increase profit and sales. The brand also said it will try to manufacture its products more quickly.
The brand did not say exactly how many stores it would be closing or how many jobs it would cut but the company is said to be closing about 50 stores and cutting about 1,000 jobs, according to an article on Rueters.
The brand had about 493 directly operated stores and about 26,000 employees, with about 15,000 of them working full-time, as of April 2nd.
Ralph Lauren had cut about 750 jobs last year, which was expected to lower annual costs by $125 million, but the brand’s net income still declined by 43.6% to $396 million while revenue declined by 2.8% to $7.41 billion.
The brand expects the store closings, job cuts, and quicker product manufacturing to lower annual expenses by about $180 – $220 million.
Then, in March, Gap announced that it would be closing 75 Old Navy and Banana Republic stores because of declining sales and in May, Aeropostale filed for bankruptcy and announced that it would be closing 154 stores.
Now, it seems as if luxury retail sales are declining.
Retail sales are probably declining because people are doing a lot more of their clothes shopping online. People are getting their clothes on websites like Amazon now instead of going into stores to get clothing. Especially since you can get a lot of new clothes, handbags, and accessories from these brands at more affordable prices.
Also, stores like H&M, Zara, and Forever 21 offer the same styles for more affordable prices. Many people would prefer to pay for the something at Zara that has the same style as a luxury brand for a much cheaper price.
So, what do you think? Are retail sales declining because of brands like H&M, Zara, and Forever 21? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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