Michael Kors has become the latest Specialty Retail brand to shutter locations. The company said it will close 100 to 125 full-priced stores, highlighting the difficulty of generating sales through brick-and-mortar locations as department stores and online retailers entice shoppers with aggressive discounting.
While Michael Kors continues to generate engagement on social media channels such as Instagram, harnessing the power of social influencers to produce outsized visibility, its performance on other dimensions has been considerably weaker – especially when viewed in the context of Specialty Retail peers, as opposed to Fashion brands. The brand ranks Average in L2’s Digital IQ Index: Specialty Retail, testifying to these mixed results.
As Michael Kors struggles to make its stores turn a profit, the brand could take an example from Sephora and Victoria’s Secret. Both Genius brands in L2’s study, these companies have both been able to turn their stores into assets. Rather than treating their brick-and-mortar locations as mere retail channels, these brands use them to create a unique experience for digital-savvy consumers.