Coach, Inc. (COH)’s Key Business Drivers

And trying to display this new identity in stores designed solely to sell handbags makes little sense. This makes redesigning their stores the second key driver, because it will give Coach a better canvas to display its new lifestyle image, showcase more products, and drive additional sales.

One of the ways that the company is currently looking to free up space in its existing stores is by transitioning to mobile points of sale and removing cash wraps, the gargantuan counters that you visit when making a purchase. If you’ve ever been to an Apple store, then you know exactly what Coach is shooting for.

This additional space has initially been used to promote Coach’s new shoe offerings — a wise move, considering stores that showcased shoes during their relaunch saw shoe sales rise from about 3% of the store’s business to 12% in only five weeks. Ultimately, this driver is really all about complementing the first and making the transition more successful.

While these two drivers alone will not determine whether Coach outperforms the market in the coming years, its odds of outperformance decreases dramatically unless it can execute on both of these fronts.

I hope you enjoyed this first look at a few of Coach’s key drivers. Feel free to try this exercise on some of your favorite companies, and stay tuned. In the coming days, we’ll be back with two more drivers that could affect Coach’s future.

The article Coach’s Key Business Drivers originally appeared on Fool.com is written by JP Bennett.

JP Bennett has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach.

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