Get ready to see a whole lot less of Michael Kors in your local mall — unless you live in Asia. On Wednesday, the luxury retailer announced it would be closing 100 to 125 stores in the next two years, the Los Angeles Times reports.
The reasons for the closures are twofold: It’s partly to make way for the brand’s expansion into Asia and partly to adjust to the increase in online shopping over in-person purchasing. It’s unclear which of the 827 global stores (a number that’s actually up by 159 locations from last year) the company is looking to shut down, but the decision is expected to save around $60 million per year, according to the Los Angeles Times.
“In order to optimize our store base, we performed an in-depth analysis on our entire fleet. Based on the results of this evaluation, we plan to close between 100 and 125 lifestyle stores globally over the next two years,” the brand told Allure in a statement. “This will enable us to focus on the most productive locations, as well as those that we believe are important and supporting our brand image.”
This is not necessarily bad news for the London-based retailer. In an earnings call on Wednesday morning, Michael Kors Chief Executive John Idol said that closing these few stores will help the company focus its resources on its most lucrative locations in “key cities” around the world. He also spoke about the company’s plans to expand its influence in Asia, where 50 stores are expected to open this year.
“We believe in our retail fleet. We think it’s critical to our business,” Idol said. “We think that the key to success there again revolves around product, and revolves around the store environment and creating excitement.”
In addition to the closures, Michael Kors also has plans to renovate around 100 of its standing stores, mostly in North America, in the same two-year time frame. According to a statement from the brand, the new store layout is built around a center runway opening into luxurious rooms that distinctly showcase accessories, footwear, women’s wear and menswear categories. This will allow sales associates to provide consumers with a unique and elevated styling experience based on the flagship Regent Street store in London.
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