Mulberry Sales Are Increasing Due To Introduction Of Lower Priced Handbags, So Start Shopping
Mulberry has had a pretty rough year, financially speaking. The brand has spent the past fiscal year trying to boost sales after a year of steep decline, and it turns out their efforts are working because Mulberry's lower priced line is selling, according to Fashionista. You might be wondering how the company could be struggling considering the bags are totally gorgeous, expertly crafted, and priced right similarly to luxury bags, but Mulberry fell on harder times after former CEO, Bruno Guillon attempted to boost the brand's luxury profile and subsequently priced out many customers, Fashionista reported back in March.
Considering the brand's less expensive options have soared in sales, it seems keeping (still high) prices down is the way to go. The handbag manufacturer has seen great success by steadily pricing down some of its smaller bags to re-attract its once loyal clientele base. For example, in Spring 2015, Mulberry priced 66 percent of its bags in the £500-£1,000 (or roughly $778 to $1556) range, versus 45 percent from a year earlier. And, from the looks of the company's preliminary full-year earnings results, their strategy is starting to pay off, with sales going up one percent thanks to online and international sales.
While retail sales declined by nine percent in the first half of the year, according to Business Insider, they increased by nine percent in the second half, resulting in a one percent overall increase for the year. Mulberry expects wholesale business to stabilize in the coming year. They're also planning to expand their handbag pricing model to their other lines of products, including shoes and ready to wear. So expect to see a lot more (almost) bargain buys at your favorite Mulberry retailer in the very near future. As though you needed one more reason to snap up some more beautiful handbags like the ones below!:
Images: Mulberry (3)