Ch. 14 Marketing Channels & Retailing

In my opinion Michael Kors operates via dual distribution. MK has both a direct and retail marketing channel for their handbags. With the direct channel MK handbags go from their specialty stores directly to the consumers. The retail channel is utilized by partnering with department stores like Macy's, Dillards, Neiman Marcus and Nordstrom to sell their products.  These channels enabled Michael Kors expand their market share and increase revenue. Most recently, MK opened a megastore in Soho. This new location is their largest chain store in the world. It has 3 floors and one of those floors is strictly for handbags. The news about this megastore made headlines in newspapers and online publications. Due to the loyalty and increasing value place upon their products from consumers, this store is definitely considered a destination store.