Have you heard that Saks Fifth Avenue is planning on a continuing practice of the slash sale pricing strategy? They feel it is the answer to move forward. This means that the designers , suppliers and all others who put merchandise in their stores will no longer be the masters of their own destiny. So that Saks can keep it's head above water , or level with the surface are going to use, abuse and sacrifice the very companies which have made it so great.
When their credit rating was downgraded to "RISKY" , they instituted this brilliant business plan.
Personally, it looks like a huge red flag. Sell merchandise to Saks at your own risk. What is so insidious about this whole deal is that they know how desperate companies and designers are to sell and to sell in their stores. The cachet of selling Saks is so tempting. There are many temptations in life with horrific downsides. This could very well be one of them. One false move and one risks total destruction. It's a gamble with the odds stacked against you.
Saks isn't the only one who's credit was down graded: Neiman Marcus, Nordstroms, Macys and others were too. That means what we knew as the MAJORS have all become risky minors. Companies like Chanel,Ralph Lauren,Dolce and Gabbana, Calvin Klein, Marc Jacobs, any and all of the LVMH stable are as much at risk as the smaller houses only they have the capital to take some of these knocks. Others will be much less prepared or protected.
Designers: Proceed with Caution.
On the Street…Howard St., New York
1 day ago