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Is Nordstrom souring on Michael Kors handbags? Nearly half of Nordstrom stores have reportedly stopped selling the brand's lower priced Michael handbags in May, according to MarketWatch. The info comes from analysts at financial services and investment firm Wedbush, who reached out to 112 handbag managers in the U.S. and Canada for the report. According to the report, 60 stores reportedly will eliminate the brand by June, with more phasing out Michael bags by the end of the year.
Wedbush's sources cited "waning interest from customers," as well as constant competition with Macy's over sales, forcing Nordstrom to price match Macy's discounted Michael Kors product.
Quality was also supposedly a factor, with Wedbush analysts writing, "Other sources said Michael Kors was the number one returned handbag brand because of poor craftsmanship, and they were not surprised Nordstrom was reducing its exposure."
A rep from Nordstrom confirmed to Racked that it still maintaining its "relationship with Michael Kors handbags and accessories," and that it could not verify or comment on the Wedbush report.
It's a known fact that like other mass handbag brands (ahem, Coach), Michael Kors have struggled with issues over discounting and overexposure. Handbags overall are proving tough for retailers, as millennials are less seduced by designer handbags than past generations.
The brand is scheduled to present its quarterly financial results next Wednesday, so stay tuned.