Gucci sneakers sales drop 31% at PoloSource: NFL.com
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NEW YORK — The world’s top men’s shoe company has cut about a third of its workforce at its flagship Manhattan headquarters, and it is trying to stem the losses with a series of new initiatives aimed at selling more sneakers to consumers.
The company announced the changes on Thursday, with a new marketing campaign aimed at encouraging men to buy the sneakers, along with a more targeted campaign aimed to help women, many of whom are shopping for sneakers on their own.
The moves mark the latest moves by Gucci to try to turn its fortunes around, which have suffered in recent years amid competition from Nike and other athletic footwear giants such as Adidas.
Gucci, whose flagship Manhattan flagship store in New York’s Central Park, opened in 2012 as a way to sell the high-fashion sneakers that the company is known for.
The store is now the largest independent retailer of men’s shoes in the United States, according to the National Retail Federation, and is home to the world’s largest men’s line.
In March, the company introduced a new online-only retail model called Gucci Shoes.
The online store is not as accessible as the online store of other shoe brands, but it allows customers to order online, track their order and buy the shoes directly from Gucci, including in-store, in select stores or on a website.
The new online store and online shopping are both aimed at appealing to men who have stopped buying traditional shoes because of price and wear.
Gucci said it was investing $100 million in the new store in order to expand sales and grow the business.
The store is part of a larger shift Gucci is taking to the women’s shoe market, which has been struggling with high turnover rates.
The company said it is working on a new approach to its online shopping that will give women more choice in what they buy.
The new online model and other changes, including an all-new brand, will help increase sales and profits, Gucci chief executive Leonardo DiCaprio said.
The moves are part of Gucci’s effort to shift from a traditional footwear business to a broader apparel and accessories brand, which DiCaprica said could bring more profit to the company.
Guccis flagship store is also getting new merchandise and apparel options in the form of a new men’s jacket and men’s t-shirt.
“We have had a hard time attracting and retaining the best and most loyal shoppers and consumers, and we need to do better to find them, DiCaprico said in a conference call with investors.
The changes will cost Gucci about $20 million annually.
The first phase of the Gucci brand will be sold in a new store on the Upper West Side, while the rest of the company will focus on online sales.
Gucca has a turnover rate of about $2 billion a year, about 15% of its revenue, DiPierroti said.
The losses will be offset by the new strategy.
The move comes at a time when Gucci and other fashion brands are trying to make the shift from selling shoes to selling apparel and other products that help people live more comfortable lives.
Last year, the Japanese company unveiled a new range of high-end fashion footwear called the “Rescue” line.
The footwear company is also making a bid to sell more women’s shoes, which accounts for about 10% of the sales in the U.S. and have fallen to below 3% in Europe and Asia.
NEW YORK — The world’s top men’s shoe company has cut about a third of its workforce at its flagship…