Coach 2006 Annual Report Download - page 5

stores carry an assortment of products depending on their size and location. Our flagship stores, which offer the broadest assortment of
Coach products, are located in high-visibility locations such as New York, Chicago and San Francisco.
Our stores are sophisticated, sleek, modern and inviting. They showcase the world of Coach and enhance the shopping experience while
reinforcing the image of the Coach brand. The modern store design creates a distinctive environment to display our products. Store
associates are trained to maintain high standards of visual presentation, merchandising and customer service. The result is a complete
statement of the Coach modern American style at the retail level.
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The following table shows the number of Coach retail stores and their total and average square footage:
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Retail stores 259 218 193
Net increase vs. prior year 41 25 19
Percentage increase vs. prior year 18.8% 13.0% 10.9%
Retail square footage 672,737 562,553 490,925
Net increase vs. prior year 110,184 71,628 59,308
Percentage increase vs. prior year 19.6% 14.6% 13.7%
Average square footage 2,597 2,581 2,544
North American Factory Stores — Coach’s factory stores serve as an efficient means to sell manufactured-for-factory-store product,
including factory exclusives, as well as discontinued and irregular inventory outside the retail channel. These stores operate under the Coach
Factory name and are geographically positioned primarily in established centers that are generally more than 50 miles from major markets.
Coach’s factory store design, visual presentations and customer service levels support and reinforce the brand’s image. Through these
factory stores, Coach targets value-oriented customers who would not otherwise buy the Coach brand. Prices are generally discounted from
10% to 50% below full retail prices.
The following table shows the number of Coach factory stores and their total and average square footage:
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Factory stores 93 86 82
Net increase vs. prior year 7 4 6
Percentage increase vs. prior year 8.1% 4.9% 7.9%
Factory square footage 321,372 281,787 252,279
Net increase vs. prior year 39,585 29,508 20,924
Percentage increase vs. prior year 14.0% 11.7% 9.0%
Average square footage 3,456 3,277 3,077
Coach Japan, Inc. — Coach Japan operates department store shop-in-shop locations as well as freestanding flagship, retail and
factory stores. Flagship stores, which offer the broadest assortment of Coach products, are located in select shopping districts throughout
Japan.
The following table shows the number of Coach Japan locations and their total and average square footage:
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Coach Japan locations 137 118 103
Net increase vs. prior year 19 15 3
Percentage increase vs. prior year 16.1% 14.6% 3.0%
Coach Japan square footage 229,862 194,375 161,632
Net increase vs. prior year 35,487 32,743 42,341
Percentage increase vs. prior year 18.3% 20.3% 35.5%
Average square footage 1,678 1,647 1,569
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Internet — Coach views its website as a key communications vehicle for the brand to promote traffic in Coach retail stores and
department store locations and build brand awareness. Our online store provides a showcase environment where consumers can browse