Luxury brand Michael Kors has officially acquired luxury footwear imprint Jimmy Choo for $1.2 billion. The purchase was intended to help with its declining sales in recent years—MK saw an 11% sales decline in the last quarter, as per the New York Times.
Sales were plummeting due to cutthroat competition and emergence of online shopping websites as well as fast-fashion retailers such as H&M. Kors had attempted to lure consumers by offering massive discounts, but the move backfired as folks become more interested in markdowns rather than paying full-price. As a result, the brand’s prestige suffered. Not to mention, the label is in the process of shutting down approximately 125 brick-and-mortar stores in order to renovate a sizable amount of its existing shops.
In regards to the acquisition itself, Kors expressed in a statement: “We admire the glamorous style and trendsetting nature of Jimmy Choo designs.” Hopefully, the designer will channel Choo’s fashion-forward attitude with MK after gaining ownership of the brand.
This comes as excellent news for people like us because if Jimmy Choo is under the same management as MK then we will likely see them in Marshalls and TJ MAXX. Who knows, maybe every high school sophomore will have a pair of Jimmy Choo’s to match their rose gold MK wristwatch.