Armani Streamlines Brands and Stores as Sales Drop
Giorgio Armani SpA is pushing ahead with plans to streamline its brands and store network after the Italian fashion brand recorded its first annual sales decline since 2009.
The Italian company joins other fashion companies, including Ralph Lauren Corp., Burberry and Michael Kors, that have been scaling back distribution in response to a slowdown in US retail traffic and a rise in online shopping.
Armani will bring its Privé haute couture line and the furniture and homewares brand Armani Casa under the umbrella of the high-end Giorgio Armani brand, while the Collezioni and Jeans labels will be folded into the more accessibly priced Emporio Armani. A/X Armani Exchange will continue to operate as the company’s mass-market arm with a younger, more informal style.
There has been a general change in the customers purchasing behaviours for many luxury brands forcing a renewed focus on simplifying portfolios in order to strengthen individual brands.
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