Luxury fashion brand Michael Kors has announced that is shrinking its retail footprint all over the world.
Recently, the US famous retailer decided to close its first unit opened in Romania, in The Grand shopping gallery on the ground floor of JW Marriott Hotel in Bucharest, three years after its launching, as capital.ro informs.
Thus, Michael Kors brand remains with a single store on the local market, in the Baneasa Shopping City Mall.
Michael Kors store hosted by JW Marriott was inaugurated in July 2015 and covered 70 sqm.
In the first year of operation, the company managing the retail unit sold luxury items worth RON 4.6 million and recorded a loss of about RON 123,000, according to data released to the Ministry of Public Finance. The decision to close the store was taken earlier in the month.
The store mainly sold Michael Kors leather bags, but also watches, jewelery, glasses and a selection of fragrances.
In an effort to improve profitability, Michael Kors announced at the end of its fiscal 2017 that it would shutter between 100 and 125 stores over the next two years. While the closings will cost anywhere from USD 100 million to USD 125 million in one time costs, the company anticipates USD 60 million in annual savings as a result.