Its no secret that the retail industry as a whole has been taking a hit lately, but now instead of losing sales to online sites, brands are losing business to the stores which they sell their products in.
Premium brands such as Michael Kors, Kennith Cole, and Coach are finding it harder and harder to compete in an industry which is experiencing drastic markdowns in order to stay afloat. These brands which have historically been inside of department stores such as Macy’s, are either gearing back their presence in the stores, or exiting them altogether in order to focus on their own brands. Full-price business is not only an issue within department stores, but also companies like Ralph Lauren and Fossil are experiencing a high amount of store closings.
The full-priced retail industry is also experiencing a blow from off-priced retailers such as TJX companies and Burlington. These stores continue to outperform department stores, and unless the trend changes, department stores will continue to decline, while off-price retailers grow.