Fashion retailer Ralph Lauren has announced its plans to focus on its core business and has shared a ‘way forward’ restructuring plan to be implemented in the coming months. Stefan Larsson, CEO, Ralph Lauren has issued a series of statements wherein his decision to stop working with the less profitable multi-brand stores has been mentioned. According to the CEO, 20-25 per cent of the label’s wholesale clients will not be served any longer. Another decision taken is to discontinue ‘Denim & Supply’ – the brand targeting a younger clientele.
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Denim & Supply was created in 2011 and gained recognition for its style, but struggled to attract its 15-30-year-old target consumers due to its high price positioning. Despite enjoying an international presence, with some 20 Denim & Supply branded stores, the label accounted only for a very small part of the Ralph Lauren Group’s business, amounting to not more than 2 per cent of global net sales.
Additionally, the Group’s top management intends to cluster as many segments as possible under its leading brands, like Polo.
Commenting on his game plan, the CEO stated, “We are pursuing the objective of improving our focus on and the resources available for our key brands, and we have recently announced the decision to discontinue the Denim & Supply brand. We will respond to the denim market’s expectations more effectively through our Polo brand, bolstering it at the same time.”
