Gucci is about to disappear from Italian multi-brand stores

After the publication of the Kering Group's quarterly data last April, Jean-Marc Duplaix, CFO of the luxury conglomerate, announced an imminent reduction in wholesale. However, no one expected such drastic measures: today Gucci announced that it will close the indirect sale in 70% of Italian multi-brand stores, going from 110 partners to just 38.

The remaining retailers are those with strategic business locations or capable of creating innovative in-store experiences. Gucci has been organizing the transaction for some time now, given that 85% of its profits come from sales through direct channels. The cut will not be limited to Italy alone: according to the report of CPP Luxury, the next wholesale market to be reclaimed will be that of the United States. 

The wholesale cut is part of a strategy adopted by the brand to control prices, which Gucci recently raised by 5-9% in Italy, Great Britain and China. The increase is due to losses incurred during the lockdown period but it seems that the issue goes beyond mere finance. Duplaix said, commenting on the April quarterly report, that after the Covid-19 "exclusivity will be the parameter more than ever" and one might, therefore, expect that the crisis induced by the prolonged lockdown has led the large luxury groups to rethink their strategy and culture more deeply.