Affected by the downturn in the US Department store and the excessive discount sales, Michael Kors performance has been severely hit, and the huge retail network has also become the burden of Michael Kors. According to the data, the total number of Michael Kors stores in the world is more than 4000, and the speed of the store is at one time comparable to the fast fashion H&M.
In order to reverse its decline in the light and extravagant industry, Michael Kors has been constantly reforming in recent years, trying to find new growth points. At present, the group is actively implementing a plan called “Runway2020”. The next two years, Michael Kors plans to shut down 100 to 125 physical retail stores to enhance profitability, at the same time, the brand will also be on the part of entity retail store renovation and strengthening of staff training, so that they can provide a more personalized shopping experience for consumers.
In terms of products, style Michael Kors will add handbags and color, rich products, handbags and accessories department is still the core brand, and will be before the end of December 2018 bid farewell to promote the sustainable development of animal fur material.
In addition to the reorganization and promotion of its own internal structure and products, Michael Kors is also tightening the opportunities for expansion of the external market. In July this year, Michael Kors to $1 billion 200 million acquisition of Jimmy Choo, the transaction has been formally completed by the end of October, Jimmy Choo has been delisted, now officially classified as Michael Kors group.