Coach Bags Deal with Simon Malls (COH, SPG)

Includes: COH, SPG
by: Andrea Wasserman

"In an unusually large multiple store deal, Coach Inc. (ticker: COH) will open 20 stores and expand 10 others inside malls owned by Simon Property Group (ticker: SPG) over a two-year period," reports Women's Wear Daily:

Some of Coach's highest volume locations are in Simon-operated malls and lifestyle centers around the U.S. — such as the Forum Shops at Caesars Palace in Las Vegas, Roosevelt Field on Long Island, New York, and The Mall at Chestnut Hill near Boston — all of which will be targeted for expansion or renovation under the new arrangement," Lew Frankfort, chairman and chief executive officer of Coach, said in a statement. "Further, this more formal, multiproperty agreement will allow Coach to better execute our growth strategy and reach more customers in both new and existing markets.

Comment: Coach stores tend to have great locations in malls, placed near luxury retailers such as Tiffany & Co. and Louis Vuitton. More Coach stores near purveyors like these means an increased opportunity for Coach to get in front of upmarket clientele with its fun yet respectable product line that's a bargain in this wing of the mall.

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