Estée Lauder is to close between 10% and 15% of its 1,500 freestanding stores globally, as part of a post-Covid restructuring programme.
In its latest full-year results, the cosmetics giant said the two-year initiative would “address the dramatic shifts in the distribution landscape and consumer behaviour post-Covid-19”.
It is aiming to reduce its store footprint mainly in Europe, the Middle East and Africa and in North America, while upping its digital investment after the coronavirus pandemic forced shoppers online.
In addition, less-productive counters in department stores will be closed.
Estée Lauder estimates that the closures will mean the loss of between 1,500 and 2,000 jobs.
The restructuring is likely to cost the firm between $400m and $500m, but once completed it expects to receive annual benefits of between $300m and $400m.
The firm will start its programme during its fiscal 2021 first quarter with completion in 2023.
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