Paul Lejuez

Coach is in a catch-22. Its discount outlet stores are driving most of its customer traffic and sales, while the company is trying to emphasize its full-price stores and regain its place among luxury brands, offering fewer discounts. "We estimate that four out of five handbags sold by Coach are coming out of the factory stores," said Wells Fargo analyst Paul Lejuez.

Last month lululemon athletica opened a store in Durham, N.C. Three weeks later Athleta, Gap's answer to Lululemon, opened in the same mall. The pattern of lululemon opening a store only to see an Athleta shop pop up nearby is happening nationwide as Gap mounts the most potent threat so far to the Vancouver-based yoga powerhouse. Athleta is borrowing from its rivals playbook, then undercutting the chain on price. Like lululemon, Athleta is hooking up with local yoga instructors and sponsoring classes such as Mommy & Me Yoga. 

Retailers are poised to show only a modest rise in January sales a snow in many parts of the United States kept shoppers away from malls TAGS: Abercrombie & Fitch and Aeropostale Inc, American Eagle, BJ's Wholesale Club Inc, Gap, J Crew Group Inc, Outfitters Inc, TJX Companies Inc and Ann Taylor Stores Corp. Shoppers struggle with snow fall January numbers will also reflect a pullback in spending by shoppers, after they opened their wallets during November and December, helping U.S. retailers post their best holiday sales in six years. Retail chains ranging from Target Corp to J.C. Penney

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