Yesterday, the US apparel brand Ralph Lauren announced the closure of the Fifth Avenue in New York’s Polo flagship store, reorganization of electricity business, and the implementation of layoffs. Fifth Avenue flagship store opened in 2014, then signed a 15-year rent agreement, the annual rent of 25 million US dollars.
2016 Ralph Lauren former CEO Stefan Larsson proposed a revitalization plan, intends to pass through the shop and layoffs, to improve the company’s efficiency and reduce expenses. But as early as February this year, the proposed Larsson has left the program. Ralph Lauren and many brands, like, suffered a retail department store recession brought internal and external crisis.
The flagship store off the layoffs is just a start, one after another brand will also close 50 stores. It is expected that the shutdown of the shop will end at the end of March 2018 or save about $ 140 million annually for the brand. However, the cost of the restructuring plan is about $ 370 million, mainly from employee severance pay, lease termination costs and the cost of cleaning up inventory.
In addition to the shop, Ralph Lauren also started to transform the new store, such as in the store to open a coffee shop and so on measures. 36 krypton had mentioned before, some men’s brand in New York and H & M new brand ARKET have started in the store set up coffee shop to attract customers. In some shopping malls in China, you can also see tennis Wennie and other brands, in the store opened a coffee shop.