Michael Kors will shut at least 100 stores

Fashion company said the outlook for 2017 is worse than expected

TRD New York /
Jun.June 01, 2017 02:10 PM

Michael Kors and a Michael Kors Window Display in New York City (Credit: Getty Images)

Michael Kors announced it will close between 100 and 125 stores over the next two years, in yet another nod to the weakening retail market.

“Our product and store experience did not sufficiently engage and excite consumers,” CEO John Idol said Wednesday. The company is down to 614 full-price stores as of April 1, from 800 stores at the end of 2016.

Stocks in the company fell 10 percent to their lowest point in more than half a decade after the news, according to CNN. Overall this year, shares in the company are down 24 percent, according to the network.

Idol said the fashion label, best known for its signature handbags, will put an emphasis on e-commerce. It’s also going to raise prices to compensate for the drop in foot traffic, according to the Wall Street Journal.

The retail market has been struggling for the past 18 months in New York City. Last month, Ralph Lauren announced it will close its Polo store on Fifth Avenue, the company’s largest retail location, and some retail landlords are turning to pop-up tenants to fill stores amid ongoing vacancies.

In its special retail issue last month, The Real Deal looked at the patchy retail recovery across the country. [CNN] and [WSJ]Miriam Hall


Related Articles

arrow_forward_ios
Clockwise from top left: 312 West 34th Street, 61 North 9th Street, 639 Classon Avenue, and One Fulton Square (Credit: Google Maps)

These were the top 10 NYC retail leases in July

Ricky's at 830 Broadway (Credit: NYC Go)

Ricky’s, iconic NYC beauty shop, faces
more closures

From top, clockwise: Cushman & Wakefield's Joanne Podell, Showfields' Amir Zwickel, Appear Here's Josh Yentob, Brookfield Properties's Mark Kostic (Credit: Getty, LinkedIn)

When it comes to retail, “real estate in New York is fundamentally broken”

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Opening Ceremony founders Humberto Leon and Carol Lim and the brand's Soho location at 35 Howard Street (Credit: Getty Images, Google Maps)  

Opening Ceremony is the latest Soho retailer to close

Town & Country Crossing in Town & Country, MO; The Crossroads in Royal Palm Beach, FL; and Mission Bay Plaze in Boca Raton, FL

Here’s why open-air strip centers are outperforming enclosed malls

The Wizarding World of Harry Potter (Credit: Getty Images)

Harry Potter-themed store probably won’t get its dragon

arrow_forward_ios
Loading...