Ralph Lauren to Close Polo Store On Fifth Avenue and Cut Jobs

Toni Houston
April 5, 2017

Ralph Lauren will also move its current digital operation to a less expensive and more flexible digital platform.

Clothing will be moved to its other NY stores, including its Madison Avenue flagship and its downtown locations.

Representatives for Ralph Lauren did not respond to a request for comment Tuesday.

These moves are expected to save Ralph Lauren approximately $140 million, which is in addition to the $180 to $220 million in savings due to other cuts the company made a year ago, when it said it would eliminate 1,000 jobs and close 50 stores. The company recently announced that CEO Stefan Larsson will leave the company as of May 1 due to creative differences with founder and chairman Ralph Lauren. During the fiscal year ending on March 31, the company had already closed 50 stores.

The Polo store on Fifth Avenue is one of the company's most high-profile locations.

Ralph Lauren, like other luxury brands, has been struggling as Americans spend lesser on apparel and accessories, resulting in falling sales in the last seven quarters.

Ralph Lauren's lower-end Polo and Lauren brands are facing competition from fast-fashion retailers such as H&M HMb.ST and Inditex's ITX.MC Zara.

Shares of the Ralph Lauren clothing brand declined 3.92 percent to $78.11 in morning trading, on Tuesday.

The company's margins have also taken a knock as department stores discount heavily to get rid of excess inventory.

The Polo Bar Restaurant, which is located around the corner from the store on 55th Street, will remain open, according to the company.

Ralph Lauren chief financial officer, Jane Nielsen comments that the closing is, in fact, aimed at freeing up the company to explore other ventures, hinting at the expansion of Ralph Coffee cafe.

Other reports by Ligue1talk

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