It's been a couple of weeks since our last noteworthy news post, so let's dive into what's going on in the retail world...
The most talked about headline this week is that Coach has purchased Kate Spade & Company for $2.4B. An acquisition we all saw coming and that the internet is now buzzing about. Here’s why… Many loyal customers are nervous that the whimsy, colorful aesthetic that the Kate Spade brand represents will be compromised under Coach's management. Which is understandable given how different the brand identities are. However, I see this as nothing but strategic on Coach’s part, just knowing how tough the retail environment is and the opportunities both brands have. Coach, for instance, is still in the process of reinventing itself within the affordable luxury market. They have been focused on gaining the attention of the 18-30 crowd with a new design team, trendier product, and less discounts. So acquiring Kate Spade- a brand that already has an established recognition and adoration with millennials is nothing but smart. If Coach can maintain the individuality of Kate Spade (while streamlining their sourcing strategy and engaging with the younger demographic) everyone will win. Lastly, this also gives the team at Coach a bit of a cushion to hone in on their target customer and test various strategies, so they too can have a more consistent, successful future.
Fabletics announced it’s first limited-edition collaboration with Demi Lovato, which will hit stores in mid May. The initial collection will feature assorted leggings and tops (which you can currently preview on the site), and in August a full performance line will be available. In addition, proceeds from the collection will go towards the Girl Up Campaign, which empowers young women to be a force of change. I will be honest- I love everything about this. I think it was smart for Kate Hudson to make Demi the first celebrity designer / collaborator for the activewear brand. The two of them couldn’t be more different, yet they both have an honesty to them that registers with fans. Demi is also very present on social media, speaking to a healthier lifestyle and “selflove.” So from my perspective this was a natural fit to gain exposure for both the brand and the cause, while promoting strength and body positivity to a younger demographic.
Toys R Us announced that they are revamping their website, which should debut in July. I felt it was important to mention this knowing how often kid- specific gifting is purchased through Amazon, for both pricing and efficiency. So I'm actually excited for TRU to invest in this ever-growing shopping channel. Not only will it enhance the overall brand experience, but hopefully get some customers (like me) to come back to them. I look forward to seeing what they come up with, as I'm a true fan of specialty retail and want nothing more than to see them succeed. PS: I am hoping additional loyalty program incentives, such as free shipping, are also being discussed so they can keep up with the competition from big box retailers.
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As always, if I missed anything noteworthy about your favorite brands please let me know. I hope you all have a wonderful Wednesday...
