Michael Kors, the handbag seller, faces the age-old retail question: can you have too many stores? It thinks it has the answer.
Business of Fashion reports today that while Michael Kors had set out to blanket North America in its glossy white boutiques when it went public in 2011 after four years and nearly 200 stores later, the handbag seller has said: Enough.
“We’ll open a few more stores, and then that rollout will be complete,” Chief Executive John Idol said on a conference call with analysts today, after the company posted its second- quarter earnings. Idol said it will soon stop opening new women’s boutiques.
Tasked with mass expansion at Kors, Idol had vowed to run 400 shops on the company’s home continent, a fleet that could take on its larger rival Coach, in his initial plan. And that’s what he did, throwing open the doors at dozens of mall and street locations each year since. Now, finally nearing that number, he will stay put, and that may not be a bad thing.