A potential takeover of retailer Kate Spade has been delayed, Reuters reports, as it considers an offer from rival Coach Inc. That follows a strategic review, outlined in Panjiva research of February 17, to find a new buyer. While a bid from Coach may be driven by market access and sales issues, there are potentially also supply chain opportunities.
Panjiva analysis of Kate Spade and Coach’s top 50 U.S. import lines shows there is significant room for supplier rationalization. Kate Spade sources 55% of its luggage lines from China or Hong Kong, whereas Coach sources 46.6% from Vietnam and a further 39.9% from Japan and Singapore. In apparel meanwhile Kate Spade sources 58.4% from Vietnam but Coach only 14.4% as it uses Singaporean suppliers instead. Meanwhile in footwear there may be limited opportunities as both companies source predominantly all their requirements from China or Hong Kong.
Source: Panjiva