Coach’s Warning To Department Stores

Coach has had it with struggling department stores. The maker of luxury shoes and handbags — which has been mounting a comeback as it reverses a years-long sales slump — told analysts on Tuesday it was considering pulling goods out of certain department-store locations. It didn’t mention names but said it would no longer participate in certain store-wide sales and promotions at the strained chains. Clearly Coach doesn’t want to hang around to see how deeply department stores will discount its products to get customers in the door. It’s the clearest indication yet that the practice of department stores lowering prices to lure customers is an increasingly unwinnable game. Coach has been trying to regain the cachet of a luxury brand, after aggressive moves to blanket the country with outlet stores and a handful of design mishaps tarnished its name and caused it to fall down-market in the eyes of many consumers. Read more at Bloomberg.