In Ralph Lauren’s latest effort to save some cash amid slumping sales and better compete with fast fashion, the company says it will be closing some stores — including its flagship Polo location in New York City — cutting jobs, and restructuring its e-commerce operations.
The retailer will be closing stores as part of its “continued commitment to optimizing its store footprint,” though it declined to say how many jobs will be affected. Though the brand’s flagship store on Fifth Ave. in Midtown Manhattan will be closing its doors on April 15, there are seven other store locations in the city that will remain.
“We continue to review our store footprint in each market to ensure we have the right distribution and customer experience in place,” Jane Nielsen, Chief Financial Officer, said in a statement.
Ralph Lauren is also trying to boost its e-commerce presence by relaunching its store on a new platform to “deliver a more consistent customer experience across the global digital ecosystem.”
Other changes could include new retail concepts and new store formats designed to bring in both old and new customers, the company says.
Though it will cost the company $370 million to implement these decisions, Ralph Lauren expects to save about $140 million in the long run.
If this all sounds familiar, thatt’s because it’s all part of the company’s “Way Forward Plan,” the same initiative that prompted Ralph Lauren to close stores and cut jobs last June.
It hasn’t been smooth sailing since then, either: The company’s new CEO abruptly announced earlier this year that he’d be leaving his job May 1 after butting heads with founder Ralph Lauren over the company’s direction.