It has been revealed that Ralph Lauren is to shut their flagship Fifth Avenue Polo store, as part of a cost-cutting plan for the future of the business. In the $370 million shake-up, the new business plan will see the company revamp its eCommerce operations, while closing stores and cutting jobs. They expect to make $140m in annual savings as a result of the scheme.

The firm first launched their money-saving strategy back in June, when the company encountered a loss in revenue, thanks to competition from fast-fashion retailers, as American’s spend less on apparel. The luxury retailer will also face further uncertainty in May, when CEO Stefan Larsson steps down after just two years in the role. It was announced back in February that he will be departing the company due to a series of disagreements with founder Ralph Lauren himself.

The Polo store on Fifth Avenue it set to close on the 15th April, after maintaining a position as one of the highest-profile locations in New York. The company still has seven other stores in the city, as well as the Polo Bar restaurant.

In terms of their eCommerce business, the fashion house have said that they will be moving it to “a more cost-effective” platform run by Salesforce, in place of the in-house platform that they had intended on introducing.

Speaking of the plan, chief financial officer, Jane Nielsen said:

“The decision will optimise our store portfolio in the New York area and allow us to focus on opportunities to pilot new and innovative customer experiences.”