COACH’S STRATEGIC OPTION IN 2007
Going into 2007. Lew Frankfort’s key growth initiatives involved store expansion in the United States, Japan, Hong Kong, and mainland China; increasing sales to existing customers to drive comparable store growth; and creating alliances to exploit the Coach brand in additional luxury categories. The company’s managers believed that there was an opportunity to double the number of full-price retail stores in North America and increase the number of North American factory stores by a third. They also believed that Japan could support approximately 70 additional Coach stores. Licensed distributors in Hong Kong operated 13 locations there and planned to open at least 10 locations on mainland China by 2007.