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SUNDAY, NOVEMBER 22, 2009
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 ANALYSIS 
3

Designers Fight Store Discounts

Sales scare away brand loyalists, they say

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(Newser) – Department-store sales may woo bargain shoppers, but they turn off the high-end base luxury designers cater to, Christina Binkley writes in the Wall Street Journal, and cut into those designers’ profits and brand control. Discounts last Thanksgiving set off a chain reaction that collapsed high-end retail’s pricing structure. “That’s not buyer remorse,” says one luxury customer of seeing markdowns on clothes she owns. “That’s buyer rage.”

Designer Eileen Fisher is fighting back by reducing her dependency on department stores. She’s opening boutiques, boosting online capabilities, and pushing stores to use “scalpel markdowns”—discretionary discounts that leave hot items at full price. Fisher may eventually buy space within stores, like Louis Vuitton, to control her product. The latter’s sales rose 10% last fall; unlike most brands, its products didn’t go on sale.

A shopper passes a window display at Saks Fifth Ave. department store in New York.
A shopper passes a window display at Saks Fifth Ave. department store in New York.   (AP Photo)
Designer clothes
Designer clothes "get marked down before they even have a chance to sell," Fisher says.   (AP Photo)
Men's clothing is on sale at Macy's department store in the Ross Park Mall in Ross Township, Penn.
Men's clothing is on sale at Macy's department store in the Ross Park Mall in Ross Township, Penn.   (AP Photo)
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3 comments
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AClotfelter
Apr 16, 09 10:41 AM CDT
So you're telling me that there are @$$holes out there who will refuse to buy something because it's on sale? Reply
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Adapt-Overcome
Apr 16, 09 11:46 AM CDT
What a crock. These people make so much money off cheap labor and still try to screw the American shopper. I went into Neiman Marcus (just to look) and they had gorgeous wedding dresses (for my daughter) for $20,000 + and they were made in Mexico. A family member who owns a bridal shop could order the same dress for $250. Talk about a "mark up". If my kids were name brand--it's from a discount or outlet store and on clearance. Only the snobby rich people don't look at price tags. Reply
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wwwonderer
Apr 16, 09 2:05 PM CDT
I agree. I admit I like high-end fashion. But I'll tell you a little secret. Thrift stores, resale shops, consignment stores, garage sales and the such are the secret weapon. I have a number of items from Armani, Gucci, and Jhane Barnes, as well as nice, not-so-high-end like Eddie Bauer, Girbaud, Guess, Gap, etc. that I got for cheap or next to nothing. You can get a lot of the things you like if you know how to shop. The other secret is to go to the high-end stores after the new year. This is when they have to get stuff out for Spring and make as much money as they can that they didn't make at Christmas. I've shopped at the Versace store in Chicago, when things were 70% off; all I could afford was a nice tie. Lol. Reply
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