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Burberry plans to move further up market

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Luxury goods retailer Burberry is planning to close some stores and stop selling in outlets that are not sufficiently upmarket.The plan was announced along with its half-year results, which showed like-for-like sales up 4% and reported operating profit up 24% at £127m. Burberry has been cutting costs for some time and says it cut out another £20m, giving it savings so far of £40m.Burberry’s shares were down 12% following the announcement.The brand said that it intends to focus primarily on luxury shoppers, by creating “compelling luxury leather goods and accessories” to attract new customers.Burberry intends to close an unspecified number of non-luxury retail and wholesale stores, as well as refurbishing other stores to improve customer experience.The retailer also intends to change its approach to communicating with customers, focusing on “conveying a new energy” to offer personalised digital experiences.”Today the sector has changed and the luxury consumer demands innovation, curation and excitement from brands and creativity at every turn,” Burberry said in a statement.The Burberry announcement comes just nine days after Burberry’s chief creative officer Christopher Bailey, who has been with the brand for 17 years, announced that he will leave the company at the end of 2018.
Source: BBC