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Kenneth Cole shuts down physical stores in the U.S.

Kenneth Cole shuts down physical stores in the U.S.
Angela Gonzalez-Rodriguez| Monday, November 14 2019

Kenneth Cole Productions, the U.S. fashion and footwear company, will shutter its homeland 63 outlet stores over the next six months, leaving just two full-priced stores in the U.S. following an earlier paring of those locations.

As reported by Bloomberg over the weekend, the 30 year old retailer is closing almost all its stores, effectively ending its run as a U.S. brick-and-mortar chain.

The retailer’s CEO, Marc Schneider, revealed this new strategy in an email interview last Friday. Schneider also explained that the company will be focusing efforts on its e-commerce site and international business, Schneider said.

Kenneth Cole gives up on brick & Mortar stores to focus on wholesale, international channels and online

The New York-based retailer will however continue to sell merchandise through other retailers, as well as strengthening its international positioning and focusing on its online shopping sites.

“As we continue on our path of strengthening our global lifestyle brand, we look to expand our online and full-price retail footprint across the globe,” said the firm’s CEO. “We need to focus our energies and resources to better serve the consumer on their terms.”

Kenneth Cole, who serves as chairman and chief creative officer, took the company private in 2012 after years in the public markets.

Kenneth Cole’s outlet shops have faced increasing competition from rivals such as Coach Inc. and Michael Kors Holdings Ltd., said Edward Gribbin, president of Alvanon, an apparel-consulting company, quoted by Bloomberg. As part of its transformation, the brand has begun relying more on licensing deals, which generate revenue from its name without the need for physical stores. But licensing agreements present their own risks, he said, because a company has less control of its brand.

“You might make money in the short term, but you lose touch with the consumer,” Gribbin said.

Kenneth Cole I thought to keep its New York’s Bowery and Arlington’s stores open.






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