On Tuesday, Ralph Lauren Corp. (NYSE: RL), the upscale fashion retailer, announced that it planned to seek cost savings by cutting jobs and closing its flagship Polo store on Fifth Avenue in New York City.
The company said that the goods from the Fifth Avenue store will be sold at other Ralph Lauren stores in New York. The moves of Ralph Lauren are supposed to save annual expenses of $140 million, and would result in one-time expenses of $370 million.
The company refused to disclose the details of the plan. In a public filing on Tuesday, the company planned to close an unspecified number of stores, close a certain corporation operations and reduce workforce. During the fiscal year ending on March 31, the company had already closed 50 stores.
“We continue to review our store footprint in each market to ensure we have the right distribution and customer experience in place,” said Jane Nielsen, the chief financial officer of Ralph Lauren.
“The decision will optimize our store portfolio in the New York area and allow us to focus on opportunities to pilot new and innovative customer experiences,” she added.
The moves respond to the current trend that consumer shift to e-commerce, the company also planned to upgrade its e-commerce system. In recent months, Gap and Macy’s also announced to close some of their stores.