U.S.-based retailer Ralph Lauren Corp. plans on cutting about 1,000 jobs and shutting about 50 of it’s stores amid a sluggish retail market and to lower operating costs and revive sales growth.
The retailer has been negatively impacted by department stores which offered heavy discounts whilst selling excess inventory.
Competition from rivals like Zara, H&M, which have a shorter production time, also affected Ralph Lauren’s sales which now plans to reduce the time taken to launch new product lines from 15 months to 9.
The company now plans to focus on its luxury Ralph Lauren line of clothing and lower-end Polo and Lauren brands.
The company expects full year revenue to decline by double-digits (lower end) amid store shut down, competition and weak sales volumes.
Further, the company expects to incur $400m in restructuring charges and about $150m in inventory spill back related charges, helping the company achieve $180-220m in annualized savings.