After several months of dialogue, Michael Kors announced on November 1st that they are officially acquiring Jimmy Choo Ltd, the British high-end shoe brand founded by the eponymous stylist with fashion designer Tamara Mellon.
For twenty years, Jimmy Choo has been growing and excelling in the luxury shoe market. Michael Kors would have a good foundation to rely in order to re-launch itself. Indeed, the American brand is suffering from a severe drop in sales in the United States due to the decline in numbers of shoppers in department stores and the rise of e-commerce platforms. It has been struggling to impose itself as a model for “affordable” luxury.
In their statement, Michael Kors hints on opportunities to increase the sales for Jimmy Choo for up to $1 billion. The strategy is based on 10 new retail store openings per year globally plus a strengthened online presence and an expanded men’s luxury footwear range.
Jimmy Choo followers can be reassured: it’s an acquisition, not an integration. The brand will stay independent and will not be confused with Michael Kors’ respective line. Pierre Denis, Jimmy Choo’s chief executive officer, and Sandra Choi, creative director will keep their places. The American brand will only back up their ideas and initiatives with a more proactive business strategy.
On one side, a “shoe” brand and on the other, a “bag” brand, two of women’s favorites accessories, Jimmy Choo and Michael Kors seem complementary. We can’t wait to see how these brands will actually perform in the luxury market.