The Second Coming of the Almighty $800 Shoe
Mergers & Acquisitions activity in the footwear industry have drawn attention recently. Jones Apparel Group recently acquired Stuart Weitzman and it looks like there is no end in sight for M&A. Back when the recession was at its worst(best? how does one rate such things!), retail experts couldn’t hold their tongues advocating the imminent downfall of the $800 shoe. The downfall never happened, and shoe companies have thrived during a time when most other luxury products have faltered. Thus, shoe retailers have a surplus of cash and a hankering to SPEND. M&A is the first way to get rid of the pesky “extra” dollars.
Can I be the first to suggest to LVMH takeover Payless? I’d love to see some S&M straps and spikes on saddle shoes.
What does this mean for the consumer, for you and me? Look for more competition, new, innovative designs, fresh ideas, and more “bandwagon” shoe fans.