Ralph Lauren has announced that it will close its Polo store on 5th Avenue in New York as part of the brand’s plans to move forward.
According to an article on WWD, Ralph Lauren has announced that it will close its Polo store on 5th Avenue in New York. The store closing is part of the brand’s plans to move forward as customers are shopping more online than in stores.
The plan includes a few ways to lower debt and cut costs as well as lowering the cost of the brand’s website and corporate job cuts. Former CEO Stefan Larson first announced the plans last year in June, which the brand will continue with until March 2018.
The plan will also cost the brand $370 million due to employee severance pays, lease termination fees, and inventory costs. It will, however, save the brand about $140 million annually.
CFO Jane Nielsen released a statement saying,
“We continue to review our store footprint in each market to ensure we have the right distribution and customer experience in place. The decision will optimize our store portfolio in the New York area and allow us to focus on opportunities to pilot new and innovative customer experiences. The Polo brand remains strong, and we expect it to further strengthen as we continue to evolve the Polo product and marketing.”
Ralph Lauren opened the store about 3 years ago after signing a lease for a 15 year term that set annual rent at $25 million.
Product from the 5th Avenue store will be moved to the men’s and women’s stores on Madison Avenue and other stores in downtown.
No announcements have been as to when the store will be closing.
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