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The Guardian World1 min read
Burberry’s £2,000 Cotswolds handbag hits ‘a sweet spot’ with Americans
TL;DR
Burberry's new £2,000 Cotswolds handbag has boosted sales, appealing to wealthy Americans drawn to the region. The brand reports its best bag sales performance since 2023, attributing success to the handbag's price and value.
Key points
- Burberry's Cotswolds handbag is priced at £2,000.
- Sales have surged due to its appeal to wealthy Americans.
- The handbag has contributed to Burberry's best bag sales since 2023.
Mentioned in this story
BurberryCotswolds
The luxury fashion brand Burberry has said a new £2,000 handbag named after the Cotswolds has boosted sales, as the English region becomes increasingly popular with wealthy Americans.
Joshua Schulman, the boss of the British brand, said its tote bags – which mix leather and the signature Burberry check – had helped drive the company’s best performance in bag sales since 2023.
He said: “During Mother’s Day in North America the customer has been responding to our vintage check introductions and Cotswolds lines. We’ve hit a sweet spot on price and value for money in a luxury context.”
The Cotswolds, which runs through counties including Gloucestershire and Oxfordshire, have become popular with wealthy Americans, and has been referred to as the “Hamptons of England”.
He said Burberry had phased out its Knight bag, which was selling at more than £2,400 for certain versions, and last year brought in the Cotswolds bags which are priced at “around and under £2,000”.
Schulman – who joined Burberry in 2024 – said the shift marked a change from a focus under Burberry’s previous management on “all attention on bags and having those at pinnacle price points without recognisable brand signatures.” He added: “That strategy didn’t work.”
Burberry on Thursday reported a return to full-year profits amid rising sales in the US and China.
The company made pre-tax profits of £49m in the year to 28 March, compared with a loss of £66m a year before as it cut £80m of annual costs, trimmed store numbers and won back Chinese and North American shoppers.
Sales were flat year-on-year, once the impact of exchange rates was taken into account, at £2.4bn.
“I am more optimistic than ever that Burberry can meet the £3bn [sales] milestone and go beyond that,” Schulman said.
Schulman said a revival had been led by core categories of scarves and outerwear but sales of ready-to-wear items had now “taken off”, bag sales were beginning to improve, and the brand had “strong attraction” to younger shoppers.
Global sales were knocked back by poor performance in Europe and the Middle East where travel was affected by the conflict in Iran. The Middle East accounts for 2% of Burberry’s global sales.
Q&A
Why is Burberry's Cotswolds handbag popular among Americans?
The Cotswolds handbag appeals to wealthy Americans due to its combination of luxury, price point, and the rising popularity of the Cotswolds region.
What impact has the Cotswolds handbag had on Burberry's sales?
The Cotswolds handbag has contributed to Burberry's best performance in bag sales since 2023, particularly during North America's Mother's Day.
How does the Cotswolds region relate to Burberry's marketing strategy?
Burberry's marketing strategy leverages the Cotswolds' growing reputation as the 'Hamptons of England' to attract affluent customers seeking luxury products.
