Coach Inc. (New York) is undertaking an aggressive expansion plan in Japan, aimed at more than doubling its annual sales in the country to $740 million by 2009. To help drive that growth, the luxury handbag retailer plans to open at least 10 new stores annually during each of the next four years.
Coach recently eclipsed Prada and Gucci to become No. 2 in Japan's high-end accessories and handbag market, with an 8 percent share. Japan accounts for 21 percent of Coach's global business. (North America is the company's biggest market, accounting for 70 percent of its revenues.)
“We are extremely pleased to announce the next phase of our growth plan for Japan, where Coach's unique proposition of innovation, relevance and value has resonated particularly well with the stylish Japanese consumer,” said Lew Frankfort, chairman and ceo. “We believe that through expansion and increased productivity, we can grow at least 20 percent annually in constant currency, doubling our sales base over the next four years.”
As part of its growth strategy, Coach plans to have 130 retail stores throughout Japan by 2009, including at least 15 flagship locations. It now operates 90 full-price retail stores and seven flagships in the country.