Kering cuts back on stores and reduces dependence on Gucci

Kering will be implementing a stringent self-imposed regime. In an internal memo, CEO Luca de Meo has outlined a strategic course of action in which the group will close stores, reposition brands, and consolidate costs.

Less Gucci, more diversification

“We remain humble,” De Meo writes in the memo, seen by Reuters, while at the same time aiming for a position as “the undisputed challenger in luxury” within five to ten years. De Meo wants to get rid of what he calls an “over-dependence” on Gucci. The flagship brand is struggling with a double-digit decline in sales, while past acquisitions are increasing its debt burden.