Online sales threaten luxury goods stores
19/08/2016
Its research shows that 7% of all luxury sales are currently made through the internet, threatening the stores operated by luxury brands and retailers.
Ralph Lauren and Hugo Boss have already announced plans to close some of their stores and brands including Burberry and Michael Kors are undergoing significant strategy shifts following disappointing financial results.
Burberry, which is planning to grow its e-commerce operations, said in May that it expects online sales to account for a third of top-line growth in the next three years. French conglomerate Kering has similar ambitions for the online aspect of its Gucci brand.
The most recent report from the US Commerce Department show flat retail sales in July following three months of gains. It was a different story for online sales, which increased 1.3% in the same period.
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