What: The iconic US company is planning to significantly expand its retail footprint.

Why it is important: While he does not question the wholesale and retail mix model, the CEO wants to rebalance the business model to guarantee a proper presentation of the brand, often neglected by wholesales who are aware of its over-dependence on them.

Ralph Lauren aims at balancing its international stores footprint by finding the right mix between wholesale presence and retail sales, be them online or offline (as a whole, direct to customer sales grew +14% vs. LY).

According to analysts, the brand is over-reliant on wholesale partners (such as Macy’s in the US) and this leads to some issues in terms of brand presentation. This is the reason for its plan to open 90 stores in 2022, partly financed by the sale of Club Monaco to private equity. According to Ralph Lauren CEO Patrice Louvet, there is still a gap between the brand name and recognition, and its actual financial results.

Ralph Lauren is opening 90 new stores this year