Core Insights - Coach is expanding its brand presence through the introduction of coffee shops, aiming to attract more Gen Z customers and increase store visits [1][4][8] Group 1: Coffee Shop Strategy - Coach has opened its third U.S. coffee shop in The Mills at Jersey Gardens and plans to open a fourth location soon [3] - The company aims to establish 12 to 15 coffee shops annually worldwide, offering seasonal menu items and exclusive merchandise [4][15] - Coffee shops are designed to enhance customer experience and encourage additional purchases, with merchandise accounting for about 30% of overall revenue [18][21] Group 2: Targeting Gen Z - Coach has successfully attracted 4.6 million new customers in North America, with nearly 70% being Gen Z and millennials [8] - The coffee shop concept provides a more affordable entry point for younger consumers who may not currently afford luxury handbags [6][7] - The brand's marketing strategy has focused on creating a full experience for customers, particularly appealing to younger shoppers [5][12] Group 3: Financial Performance - Coach's parent company, Tapestry, has seen a 67% increase in shares this year, driven by strong sales growth and new customer acquisition [7][8] - The company is on track to become a $10 billion brand, with annual revenue of approximately $5.6 billion [12] - Coach has capitalized on the trend of rising prices in the ultra-luxury segment, allowing it to increase its own prices while maintaining perceived value [13] Group 4: Market Positioning - Coach has blurred the lines between retail channels by selling full-price items at outlet stores, responding to consumer behavior influenced by social media [9][10] - The coffee shops are strategically located in outlet malls, addressing a gap in food options and enhancing customer convenience [20] - The brand's exclusive merchandise, such as tote bags featuring a unique logo, adds to the appeal of the coffee shops [19]