Upscale fashion retailer Ralph Lauren said Tuesday that it would cut jobs and shutter its Polo store on Fifth Avenue in New York City as it seeks cost savings amid a sputtering turnaround effort.
The retailer said Tuesday in a public filing that its latest moves were in addition to a plan announced in June 2016 – when it said it would eliminate 1,000 jobs and close 50 stores – to shed US $180 million to US $220 million in costs.
The New York-based retailer also said on Tuesday that it would integrate its products from the Fifth Avenue store into the Ralph Lauren men’s and women’s flagship stores on Madison Avenue and its downtown locations.
Ralph Lauren will also move its current digital operation to a less expensive and more flexible digital platform.
The latest moves will save Ralph Lauren about US $140 million a year but the company will incur some US $370 million in one-time restructuring charges.
The company has suffered from a heavy reliance on department store business, namely including its deal with Macy’s, and insufficient online business.
The new strategy includes exploration of “new retail concepts,” such as the Ralph’s Coffee brand, and “developing new store formats,” the company said in the filing.