Price reductions continue. Upscale accessories chain Coach Inc. said it was lowering its prices on key styles 10% to 15%.
Faced with job insecurity and a severe mortgage crisis, consumers have not flocked to buy the high-end home furnishings that Williams-Sonoma and its associated brands sell. This month, the company reported a 24.2% decrease in 2008 same-store holiday sales compared with the same period a year earlier.
Also on Wednesday, Coach executives announced plans to lower prices as much as 15% on handbags and other accessories.
Mike Tucci, president of North American retail, told analysts during a conference call that the company would also bring more of its handbag prices into the "sweet spot below $300."
"We will exploit this opportunity by designing into this price point, engineering collections that can provide this exceptional value to our consumers and generate excellent margins at the same time," he said. The lower prices will help the company "gain share in a changed consumer marketplace."
A Coach spokeswoman said the reductions would bring the average price of a Coach handbag to less than $300 later this year; currently, the average price for one of the company's handbags is about $335, she said.
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