The New York Times reported this morning that Michael Kors has struck a deal with Jimmy Choo for a meer $1.2 billion (perhaps not in those exact words). As the retail industry faces challenges with teh rise in e-commerce, fashion companies are looking into new ways to innovate and drive foot traffic to their brick and mortar locations.
NY Times reporters Elizabeth Paton and Chad Bray said that the brands are expected to expand in both the retail and online space.
"Michael Kors said it expected to open new Jimmy Choo retail stores and expand its fashion offerings. It also plans to develop Jimmy Choo’s online presence, part of a broader push by brands to win over fickle consumers and fend off the threat posed by Amazon," they said.
Since going public in 2011, this is Michael Kors' first deal to expand the brand beyond it's own name, Bloomberg reported.