In the financial report, Burberry estimates that revenue and operating profit margins in the 2019 and 2020 fiscal years will continue to maintain stable performance and are expected to achieve a cost saving target of 100 million pounds. However, CEO Marco Gobbetti also stressed that the brand is still in the transition period of transition. At present, the transformation plan is also under implementation. By the fiscal year of March 31, 2018, Burberry closed 34 stores around the world, opened 14 new stores and closed 20 stores, of which 6 were online stores. Burberry pointed out in the earnings report that closing 20 retail outlets has saved the group a total cost of 64 million pounds.
Closing stores is part of Burberry’s larger strategy. In particular, close some small shops with non strategic locations and invest in new stores in high known and influential fashion markets, so that they can make sure that they get the right brand positioning in all markets by more precise cost investment. Marco Gobbetti said.
In this regard, Zhou Ting, President of the wealth Research Institute, said in an interview with the media that the targeted shop moves can make Burberry more focused on the core consumers of luxury goods, shorten the retail chain and improve the consumer shopping experience.