USA Today reports that Coach, the luxury accessory seller known for purses and more, is buying out Kate Spade, another luxury items store.
Kate Spade has had sluggish sales in recent times, with its target market being milennials, who make up 60% of their sales.
This appealed to Coach, who believes that they can up Kate Spade’s sales again.
CEO Victor Luis stated, “It is a strong brand with a clear and consistent positioning, with leadership in the attributes of fashionable, fun and feminine, and a growing share of Millennials.”
Kate Spade had opened 52 new locations in 2016, but all is being bought out by coach for $2.4 billion.