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Another Retailer Ditches Department Stores Due To Shrinking Sales, Conflicting Brand Representation


Michael Kors announced Wednesday it will no longer participate in department stores’ friends and family sales, saying the rampant sales environment damages the brand’s image. Luxury purse brand Coach announced the same thing earlier this week, pulling its products from 250 department stores.

"It's creating confusion in the consumer's mind relative to the value of the Michael Kors brand when it's being seen so often on sale in so many different places," says CEO John Idol. "We have to correct something that we think is actually having a negative long-term effect for the brand.”

The move comes after the luxury retailer reported a 7.4% slide in same-store sales, RetailDive reports. Yet pulling away from department stores could be easier said than done for Michael Kors—the retailer has the highest direct exposure to the wholesale channel among luxury retailers, with nearly 50% of its North American sales tied to department store sales. [RD]