Luxury Brands Upgrade Outlet Stores as 70M Consumers Exit Market, Coach and Ralph Lauren Lead Strategy Shift

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According to CNBC on July 26, luxury brands including Coach and Ralph Lauren are upgrading outlet stores to attract value-conscious "aspirational" consumers amid weakening demand in the premium fashion market. Since 2022, approximately 70 million consumers have exited the luxury market, shrinking its size to around $40 billion as of last year, according to consulting firm Bain & Company. These mid-tier premium brands are repositioning outlets as independent sales channels rather than clearance venues, blending exclusive outlet products with elevated shopping experiences. Wells Fargo raised its price target for Ralph Lauren to $425, citing improved outlet and wholesale quality, while Bernstein set Coach parent Tapestry's target at $180, highlighting consistent double-digit revenue growth.
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