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Hermione


Kate Spade

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Recession + Retail
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So have you guys noticed that prices of not only gas and food are going up, but it seems like retail is up as well?  Not only that, but markdowns are fewer and farther between -
What I see happening is this: stores aren't making as many sales, so they are starting their prices a few dollars higher and keeping them there, instead of the regular system of markdowns/ sale that many of them used to have (Banana, etc)
What this does is give them a higher average total per transaction, but I think this will ultimately alienate many customers, and will drive some businesses to brankruptcy or close to it (in the next couple of years I mean, not right now.)

I'm no economic expert, but it seems to me that the best thing to do would be to have prices as low as possible while they are still making a profit, to encourage people to keep spending.  With a recession around the corner, and doom and gloom being preached from every paper, the things that will suffer the most are expensive clothes and other unnecessaries - a higher price at the cashwrap will finish the job.

I don't know.  Just rambling.  What do you guys think?


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Cortney1982


Chanel

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Well, with the higher price of fuel, it takes more money to ship the product to the stores which means markups.  If retailers can't turn a profit they are better off shutting the doors!

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XtinaStyles


Marc Jacobs

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I have noticed lots of advertising for sales... but nothing really great once I get in there.

I agree that economically, it would make more sense to lower prices or at least not raise them, but until the govt has control of retail, I don't think that would happen.

I am a little put off by American companies like Banana and JCrew charging $150 for chiffon tops and things like that in these days... and I do have to say it seems like a blatant slap in the face to read about $50 candles or $475 shoes in a "must have" section of a magazine.

Recently I can't stand shows like Sweet 16 and Kimora's Fabulous Life (or whatever its called). There is an utter disregard for spending and budget and while I do understand that its fantasy, it seems like a taunting slap in the face for all of us who struggle to make ends meet, esp lately when people are foreclosing and losing their jobs...

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Hermione


Kate Spade

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XtinaStyles wrote:

I have noticed lots of advertising for sales... but nothing really great once I get in there.

I agree that economically, it would make more sense to lower prices or at least not raise them, but until the govt has control of retail, I don't think that would happen.

I am a little put off by American companies like Banana and JCrew charging $150 for chiffon tops and things like that in these days... and I do have to say it seems like a blatant slap in the face to read about $50 candles or $475 shoes in a "must have" section of a magazine.

Recently I can't stand shows like Sweet 16 and Kimora's Fabulous Life (or whatever its called). There is an utter disregard for spending and budget and while I do understand that its fantasy, it seems like a taunting slap in the face for all of us who struggle to make ends meet, esp lately when people are foreclosing and losing their jobs...


amen

 



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Suasoria


Chanel

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I don't know what it's like lately, but the last time I looked at financial news for the retail sector, the high end showed sales increases (Saks, Neimans) while the middle was flat or down. Might have been around the holidays.

What it says to me is that the people who are well off enough that they aren't being affected by the housing crisis, gas, food, etc. are still spending.

-- Edited by Suasoria at 00:39, 2008-06-24

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member


Hermes

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Everything I've read lately shows that retail says are down - I read recently stores like JCrew and Nordstrom are down 25% in sales.  I actually have noticed more and more sales in stores.  Saturday I was in Banana, and literally almost the whole store was on sale.  JCrew has a lot on sale - I've noticed newer items already on sale, and same with Anthropologie.

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XtinaStyles


Marc Jacobs

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Suasoria, I think I remember reading the same thing - I believe Hermes had its best fiscal quarter EVER this year meanwhile Walmart is down down down.

Perhaps people who are more comfortable with money know they have a savings or are not worried about losing their job so they don't cut back in the same way that we do.

Also, with the American dollar being so weak, ALOT of tourists are coming here and shopping to save money, maybe that could contribute to the influx of sales of luxury items?

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kenzie


Chanel

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It's true that the people who are most squeezed by the recession/potential recession are the working and middle classes. The upper class really isn't affected much, if at all, so I would imagine sales of luxury goods and higher end stores would continue as normal, while stores that have a largely working or middle class clientele would be hardest hit.

-- Edited by kenzie at 13:40, 2008-06-27

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alb


Marc Jacobs

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this was a really interesting thread for me to read.  having just moved back to the states after living overseas for two yrs, i've been curious about retail prices going up due to the economic state of this country. 

sorry to highjack a bit, but i just got in last night and noticed that a popular high-ish end boutique in arlington called all about jane is boarded up, while stores like Chicos (ick) and AT Loft were still going strong!  i know the owner at aaj (i worked their PT for ahile) and I really don't think she would ever move to a new location.  anyone know the story on that?  has the shopping selection declined in dc and northern va?  i'm bummed.    

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ayo


Coach

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Yeah AAJ closed about a year ago (I think)
anyway I'm not sure what the story is there..
however, there are still *some* cute little boutiques in the city (i.e. Urban Chic)
but definitely I've seen a lot more places close down.
it is unfortunate.


alb wrote:

this was a really interesting thread for me to read.  having just moved back to the states after living overseas for two yrs, i've been curious about retail prices going up due to the economic state of this country. 

sorry to highjack a bit, but i just got in last night and noticed that a popular high-ish end boutique in arlington called all about jane is boarded up, while stores like Chicos (ick) and AT Loft were still going strong!  i know the owner at aaj (i worked their PT for ahile) and I really don't think she would ever move to a new location.  anyone know the story on that?  has the shopping selection declined in dc and northern va?  i'm bummed.    






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alb


Marc Jacobs

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That's too bad.  I'm glad Urban Chic is still around though.  I should make a trip to Georgetown soon then!

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