Thursday, 9 November 2017

Luxury goods retailer Burberry plans to move further upmarket



Luxury goods retailer Burberry, best known for its trench coats and distinctive check pattern, is to close some stores and withdraw from outlets that are not upmarket enough.

 
The new strategy was announced along with its half-year results, which showed like-for-like sales up 4% and a 24% rise in operating profits to £127m.


Burberry said it had made £20m in cost savings, taking cuts so far to £40m.


Shares fell 12% on the news before recovering to a 9% fall by midday.


The luxury retail sector had changed and the "luxury consumer demands innovation, curation and excitement from brands and creativity at every turn," Burberry said in a statement.
"To win with this consumer, we must sharpen our brand positioning."


It intends to close an unspecified number of non-luxury retail and wholesale stores, as well as refurbishing other stores.



BBC    News.