Thursday, November 5, 2009

Saks Continues It's Desperation Moves

"SAKS SALE INTEL —The discounts are coming! Our Saks Fifth Avenue informant tells us that today is the day for the first reductions on fall merchandise—40% off all those early fall deliveries you've had your eyes on. Don't wait too long for further discounts, though—we're told what doesn't sell is getting shipped to outlets. We guess designers didn't love the idea of their $2000 dresses languishing on clearance racks for months and months. And take heed, once the prices fall at one department store, you'll find similar deals at the others. [RackedWire]"

courtesy of

Saks Fifth Avenue is the most desperate of all the big box luxury retailers as far as I am concerned. Saks shows no believe in their vendors/designers as well as their associates. If I am running a store I am not going to be the first one every season to break price, it hurts your margins first and foremost but I believe the most damaging aspect of the early break is the perception. Consumers are noticing Saks early trends thus wait for the early break and not buying at retail (hey everyone wants a good deal can't blame them). The other side of the perception angle is it really shows that Saks is not truly behind their seasonal buys, if they felt they brought in the best and strongest selection each season they wouldn't be racing to mark it all down. Anyways at the end of the day this kind of retail behavior hurts everyone in the industry from the designers down to the sales associates. It also hurts the consumer unbeknownst to many, as the more retailers mark down early the less they favorite designer will sell to those stores making your favorite designer less and less accessible.

That is my rant. If you have anything to contribute please feel free.