Backed By New Owners, Versace Plans Over 100 New Stores
Versace's new ownership has ambitious plans for the Italian luxury brand.
Capri Holdings, the new corporate name of Michael Kors after it purchased Versace and Jimmy Choo, wants to add 112 Versace stores across the globe, bringing its total count from 188 to 300, Bloomberg reports. Capri purchased Versace for $2.2B in the fall of last year, and now wants to double its global revenue to about $2B.
Capri has set a goal of reaching the 300 number by 2022, and distributing its new stores more equitably across continents. More than half of open Versace stores are in Asia, including its newest and largest in China, scheduled to open in Beijing this week. But it will be doing a lot more than adding stores to reach that $2B goal.
Versace will renovate a large part of its current footprint, including all 28 of its U.S. stores. CEO Jonathan Akeroyd told investors that he seeks to double the brand's sales per SF.
“It’s very clear: The productivity in our stores is not what it should be,” Akeroyd said according to Bloomberg. “We need to rapidly increase the productivity and this will really be the real driver to reach us to our $2B [target].”
The way to boost sales, Akeroyd believes, is through doubling down on accessories such as handbags, suitcases and backpacks rather than clothing. Versace's goal is to draw 60% of its revenue from accessories, up from the 35% it is now. Accessories will allow Versace to bring its logos and branding more to the fore.
Michael Kors stores still make up the lion's share of Capri's physical footprint at around 1,000 locations worldwide.