In the latest of a string of recent designer buyouts, Aldo is preparing to buy Vince Camuto to merge the two mega shoe brands. Aldo is a privately owned Canadian shoe organization, and they hope to grow their sales and presence in the fashion industry through this recent buyout. Financial terms of the deal were not released to the public.
Designer Vince Camuto passed away in 2015 of prostate cancer. Camuto was not only the head designer of Vince Camuto Group, but co-founded Nine West.
As a legend in the shoe industry, his death left The Camuto Group to make some complicated decisions. After Camuto’s death, his five children inherited the business but were looking for a way to cash out. Aldo purchasing The Camuto Group seems to be the perfect solution. Aldo released a statement saying, “It’s an opportunity for them to move on from the business and monetize their assets.”
Aldo Shoes was founded by Aldo Bensadoun over forty years ago and what started as a production of just sixty pairs of shoes has grown into an empire. In 2015, Aldo brought in over $2 billion in revenue. Bensadoun reports that Aldo brings in an average of over $1.5 billion in sales annually. Although Bensadoun is now retired, Aldo remains in the family as his son David took over and now runs the fashion house.
Unlike other fashion brands who are buying each other out, Aldo has no intention of joining the two brands together and selling Vince Camuto shoes in Aldo stores or vice versa. Instead, Aldo will keep the two brands separate and use the merger as a way to expand their control of the shoe industry.
Also, while shopping malls and retail stores suffer to online shopping, Aldo has maintained a very strong in-store presence. The corporation has over 3,000 stores worldwide and brings in about 200 million visitors annually. In a time where technology is king, Aldo’s ability to hold on to their retail stores is unique and wildly impressive. As they continue to expand their empire with the addition of The Camuto Group, it will hopefully bring in increased revenue and in-store visitors for Vince Camuto shoes and accessories as well.
This merger is different from the others in that it is based off expansion and enlargement, not combining brands together. While building such a strong demand for in-store shoppers and shoes with mid-range prices seems impossible nowadays, Aldo is doing it. And doing it well.