Festive lights decorate the Prada store on New Bond Street as shoppers do Christmas shopping in central London, Britain, December 16, 2018. REUTERS/Henry Nicholls
May 21, 2019
MILAN (Reuters) – Italian luxury goods group Prada said it would shrink its wholesale network in Italy and Europe in a push to have uniform prices for its products across different outlets and reduce markdowns.
The Milan-based company said in March it would stop offering end-of-season promotions at its own shops in a bid to boost margins and protect its brand.
Prada joined a number of rivals that have been striving to control pricing policies better as they face an increasingly fragmented market, in which prices have been put under pressure by booming online sales.
For Prada, the decision “is essential to ensure greater consistency in pricing policies” and aims to support sustainable long-term growth, the company said in a statement on Tuesday.
Prada said it would end relations with some Italian and European wholesale partners and gradually replace them with new digital and e-commerce players.
Shares in the Hong-Kong listed fashion group closed down 1.9% on Tuesday.
(Reporting by Claudia Cristoferi; editing by David Evans)
