2018 marked a significant turning point for Michael Kors Holdings Limited (KORS), a company once synonymous with accessible luxury. The year saw the brand embark on a drastic store closure strategy, shuttering over 100 locations in a bid to revitalize its image and combat declining sales. This move wasn't an isolated incident; it reflected a broader trend within the retail landscape, with numerous major players facing similar challenges and resorting to aggressive store closures. This article delves into the reasons behind Michael Kors' decision, its implications for the brand, and its place within the wider context of the retail apocalypse of 2018.
Michael Kors to Close Over 100 Stores, Blames 'Difficult Retail'
The announcement that Michael Kors would be closing a significant number of its stores – estimates ranged from 100 to 125 – sent shockwaves through the retail industry. The company attributed the decision to a "difficult retail environment," a phrase that became a common refrain for struggling retailers in 2018. However, the "difficult retail environment" was only part of the story. Michael Kors' own aggressive expansion strategy in previous years played a significant role in its current predicament.
The brand's rapid growth had led to an oversaturation of its stores, diluting the perceived exclusivity and luxury associated with the Michael Kors name. The accessibility that once fueled its success became a liability, contributing to a decline in sales and a devaluation of the brand's image. By closing underperforming stores, Michael Kors aimed to regain control over its brand positioning, focusing on higher-quality locations and a more curated retail experience. The hope was that this strategic retreat would ultimately lead to a stronger, more profitable future.
Retailers Closing the Most Stores
Michael Kors wasn't alone in its struggles. 2018 witnessed a wave of store closures across various retail sectors. While the exact numbers vary depending on the source and the definition of "store closure" (including bankruptcies, mergers, and planned shutdowns), it's clear that numerous major retailers significantly reduced their physical footprint. This phenomenon, often referred to as the "retail apocalypse," was fueled by several factors, including the rise of e-commerce, changing consumer preferences, and economic uncertainty.
Many articles and reports circulated during that period detailing the extensive list of retailers closing stores. Headlines like "The 58 retail chains that closed stores in 2018" and "These major retailers are closing 1,000 stores in 2018" highlighted the scale of the problem. These closures weren't limited to a single sector; they spanned department stores, apparel retailers, electronics stores, and more. The common thread was the inability of these companies to adapt to the rapidly shifting retail landscape.
The 58 Retail Chains that Closed Stores in 2018; These companies have closed or will close stores in 2018; Michael Kors to shutter 100; Stores Going Out of Business 2018
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