After my last purchase from Kate Spade (a leather wallet), I received in the mail a handwritten thank you note on heavy card stock from the sales associate that helped me pick it out. It wasn't even a very big purchase, given that the wallet had been marked down, so the gesture was that much more appreciated. I'm been impressed by the consistently gracious service at the Kate Spade stores I've visited. Even if I'm only buying little stocking stuffers like packs of pencils and tins of mints, the salesperson will wrap them individually in tissue for me, before tucking them into one of the Kate Spade signature striped bags.
Although I would love to be able to buy their handbags regularly, my budget doesn't really permit that, so when I visit their Georgetown store, I'm usually buying stationery (which I love). Kate Spade has really high quality, often whimsical stationery that is not expensive--most sets are under $25. The envelopes are lined with tissue paper or have some sort of pattern inside. I've bought for myself and as gifts, the sets of boxed notes, invitations, and pencil cases. The little tins of mints, chocolate bars, and packs of pencils are an inexpensive (all under $10) way of giving a little bit of Kate Spade to someone.
The handbags there are typically between $200-$400 and I think very high quality. I had a leather shoulder bag for about 2 years when the zipper broke and I brought it into the store and they sent it out to be repaired, free of charge, and they shipped it back to my house with a new pink lining inside as well. Kate Spade also offers really adorable shoes, although I have yet to purchase a pair (they are definitely on my wish list though).
Since the Georgetown store is rather small, I frequently look on the Kate Spade website, particularly for their home items, like stemware, dessert plates, picture frames, etc. The benefit to the website is a larger selection, and many more sale items than in the store. Although I'm signed up to receive email/mail newsletters, they don't send out sale notifications, so I just have to remember to check. One thing to be aware of is the online sample sale (also not advertised) that happens in mid to late October.