One of the things we love most about Kate Spade is the brand’s quirky aesthetic and off-beat, small boutique feel. But now that Kate Spade has been bought out by Coach, we — along with many other shoppers — can’t help but start to sweat over what may be on the horizon for our beloved polka-dotted brand.
Coach purchased the brand in a $2.4 billion deal this week, after Kate Spade — like so many 2000s-era mall brands and department stores before it — suffered insurmountable financial losses. An online retail culture coupled with increased competition from fast-fashion brands, like H&M, Topshop, and Forever 21, has drawn shoppers away from Kate Spade in recent years.
But Coach, seeking to expand its reach to millennials and broaden its portfolio to compete with fashion conglomerates like LVMH, which owns Louis Vuitton, Christian Dior, Fendi, and other high-fashion labels, sees Kate Spade as a stronger partner.
"Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials," said Victor Luis, CEO of Coach, in a statement. "We believe Coach’s extensive experience in opening and operating specialty retail stores globally, and brand building in international markets, can unlock Kate Spade’s largely untapped global growth potential."
Shoppers, though, expressed trepidation on Twitter about the sale, noting that while Coach bought the brand to grow its relationship with Millennials, Millennials themselves fear the ubiquitous-in-the-2000s brand will dilute Kate Spade’s inherent kitsch.
Here’s just a sampling of the outrage being logged on Twitter:
We don’t know what’s next for Kate Spade, but we do know we love the brand’s accessibility, whimsy, and reasonable price point. Never change, Kate!
