Ralph Lauren is making major changes to heighten its market presence.
As part of its Way Forward Plan, the company is shifting to a new e-commerce platform and closing its Polo store in New York City. With both business improvement initiatives, Ralph Lauren will bring in roughly $140 million in annualized expense savings, which will benefit the company’s future growth.
Under a new partnership with Salesforce’s Commerce Cloud (formerly Demandare), Ralph Lauren will move to a more cost-effective and flexible e-commerce platform that’s expected to deliver improved digital shopping experiences for consumers and reduce total operating costs.
Ralph Lauren will also optimize its store footprint by closing its Polo store on 711 Fifth Avenue in New York City, and transition its product into the Ralph Lauren women’s and men’s flagship stores on Madison Avenue and its other New York City locations. The company’s other seven store locations around the city and flagship Polo Bar restaurant will remain in operation.
“We continue to review our store footprint in each market to ensure we have the right distribution and customer experience in place. The decision will optimize our store portfolio in the New York area and allow us to focus on opportunities to pilot new and innovative customer experiences,” Ralph Lauren CFO Jane Nielsen said. “The Polo brand remains strong, and we expect it to further strengthen as we continue to evolve the Polo product and marketing.”
These streamlining activities are expected to result in $140 million in savings each year, and that money will go toward investments in future growth. The savings come in addition to the $180 to $220 million in annual savings Ralph Lauren announced at its Investor Day last June.
Ralph Lauren will announced its Fourth Quarter Fiscal Year 2017 results on May 18, 2017.