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Department Stores Stock The Aisles With Fewer Items


For those still out shopping last winter, department stores represented a rare opportunity, tons of inventory marked deeply down. Don't expect that magic to happen again. More and more stores are announcing that they are reducing inventory so as not to be left holding the bag if shoppers fail to show up. Saks CEO, Stephen Sadove tells Bloomberg that "across the board you are going to find less of the sizes, less of the availability in almost all of the categories." He also says that markdowns won't be as dramatic as they were last year. While in previous years the buzzword was "masstige" offering luxury for everyone now Sadove says that "luxury has always been about scarcity."

The ripple effect of department stores cutting back inventory has already made it increasingly hard for some designer labels to survive. Neiman Marcus and Saks have both said they are cutting back on lines that don't sell well and linger on the racks. And the recession also seems to be stifling creativity a bit. Stores are looking for staples, classics and safe bets to stock their stores. The avant-garde, trendy and daring is too risky if there are fears that it won't sell. Brands are making one or two versions of a particular style rather than a wider range. Retail sales are expected to rise slightly by the end of this year but it won't be enough to make up for last year's sharp losses.

Hermes Reports Profit, Raises Dividend

hermes
Some luxury brands may not be doing well but Hermes is still doing a brisk business in Birkin bags. Its reported profit beat analysts' estimates and the French brand even raised its dividend. The company's net income for 2008 rose less to 290.2 million euros beating an estimate of 287.5 million euros which was the estimate by 12 analysts compiled by Bloomberg News. It will pay a dividend of 1.03 euros a share versus last year's 1 euro.

While most stores have had a rough start to the new year, Hermes found that sales in the company's own stores rose in January and February. The confident CEO Patrick Thomas told Bloomberg that the company won't change its strategy and plans to continue opening new stores.

It's been a challenge to predict which luxury brands will do well. Some such as LVMH, the owner of Louis Vuitton and PPR, the owner of Gucci have both seen the luxury market remain solid but Bulgari saw a huge drop. Hermes has expanded less rapidly than some brands but it has maintained its prestige level.

Zales To Close 115 Stores

Filed under: Jewelry

zalesBig jewelry chains are struggling. We've seen Fortunoff head for liquidation and now Zale Corp. has announced that it will close 115 under-performing stores after posting a net loss for its fiscal second quarter. It had a loss of $23.5 million down from a profit of $60.8 million for the same time period last year. Sales were down 17.9 percent from a year ago. Zales plans to cut $175 million from its budget through cost and inventory reductions and is eliminating 245 jobs. Zales has been suffering in an economy that is being particularly unkind to jewelry sales. Also in order to attract buyers, Zales cut prices and the discounts led to a drop in gross margin.

Halle Berry Shops at Sabrina Sky and So Should You

Filed under: Apparel, Celebrity Shopping, Children

Halle BerryHalle Berry was recently spotted at Sabrina Sky in Scottsdale, Arizona, shopping for her baby Nahla.

Sabrina Sky
is an edgy children's clothing and accessories store with lines such as Juicy Couture Baby, Ed Hardy, True Religion, Joes Jeans and Harajuku Lovers. The store is truly one-of-a kind - there's a life-sized dollhouse in there!

So what did Halle Berry buy, you ask? A Stripe Plum Tunic by SpenldidLeather, a Diaper Bag by Christine Price, and a onezie by Childish Pegasus

The store was created by Angela Clervoix (wife of record producer Sha Money XL), and named for her daughter, whom she sadly lost to SIDS in 2005.

For more information, or to shop, visit the Sabrina Sky website!

Vera Wang Opens a New Store in Soho, NYC

Filed under: Apparel, Decor, Dining, Handbags, Events

Vera Wang Fashion FlagshipVera Wang & Arthur Becker, Alejandro Santo Domingo, Anne & Mario Grauso, Brian Atwood, Debbie Bancroft, Diane von Furstenberg, Donna Karan, Eleanor & Jon Ylvisaker, Fern Mallis, Gigi Mortimer, Helen Lee & Tim Schifter, Kimberly Kravis, Lakshmi Menon, Marina Rust & Ian Connor, Melania & Donald Trump, Nate Berkus, Ralph & Ricky Lauren, Roopal Patel, Samantha Boardman & Aby Rosen, Somers Farkas, Steven Kolb, and Veronica Webb were all in attendance last Thursday at the opening of Vera Wang's new boutique in Soho.

While we all know Vera Wang is unmatched in bridal apparel, she is also making fragrance and beauty-related products (Coty Prestige, Inc.), eyewear (Couteur Designs, a division of the Kenmark Group), china, crystal, silver and gifts (Wedgwood), Vera Wang suite (Halekulani Hotel), fine papers (William Arthur), mattresses (Serta Mattress Company), Lavender Label handbags (Accessory Network) and Lavender Label shoes (Brown Shoe).

Her ready to wear designs and more are available for browsing in person at the new Vera Wang Fashion Flagship, located at 158 Mercer Street, 212-382-2184.

Iradj Moini in Soho

Filed under: Jewelry

Iradj Moini scarab brooch
Iradj Moini, a former couture designer for Oscar de la Renta, makes some of the most exquisite and unusual jewelry we've seen this millennium.

As you shop in NYC's Soho neighborhood this holiday season, be sure and stop by the Spring Street boutique (198 Spring, near Sullivan). The boutique has been open since Spring 2007, and feels like an art gallery. You won't believe you're looking at new pieces, released seasonally, and not well-kept relics of the 1920's.

If you're not in NY, you can also browse a number of Iradj Moini's items at Domont Jewelry, a West Hollywood, CA jewelry dealer with an exceptional selection of Iradj Moini on display their website.

Almost every piece is stunning, and worth a look if only for inspiration.

Neiman Marcus, Nordstorm and Saks Prepare For Rough Times


The news isn't good for luxury department stores lately. Both Neiman Marcus and Saks have reported that same-store sales fell by double digits last month, numbers that are, as the Dallas Morning News Reports, reminiscent of the post-9/11 declines in 2001 and 2002. Neiman Marcus had a drop of 12.9 percent last month (Neiman Marcus and Bergdorf Goodman stores had a 15.8 percent drop but the Neiman Marcus Direct catalog and online business had a 5.3 percent increase). Saks saw same-store sales fall by 10.9 percent. Both companies also have said they don't expect things to get any better soon, they are predicting weaker sales for the rest of the year. Nordstrom is also suffering with a 9.6 percent decline in September same-store sales. The good news for consumers is that sales will start earlier than usual and discounts will be deeper during the upcoming holiday season. For these three stores especially, it is the return shopper that will sustain them. I predict that these loyal customers will most assiduously courted by the stores with free gifts, deep discounts and other enticements over the coming months so now might be a good time to sign-up for their email alert lists.

Can Talbots Survive?


Talbots, the preppy store with the red door, is fighting for relevance in the fashion market. The chain, which has always focused on classic fashion that skews a bit older, is looking to stay afloat at a time when retailers are facing major challenges. WWD reports on the company's three-year program. Talbots is planning to stay the course in terms of their take on classic clothing but they will also have an increased focus on large sizes offering both "boutiques" of large size offerings in their regular stores and additional Talbons Woman stores. They will also launch a premium outlet concept this year. The store has shut down their men's and children's divisions honing their focus on women's fashion.

It's an uphill climb for Talbots, which also owns the J. Jill brand. J. Jill generally attracts customers in their late forties and the Talbots average customer is in their fifties. Part of the challenge it seems is that younger women aren't turning to Talbots as they age. I think that there has been a fundamental shift in which women in their 30s and 40s find themselves to still be interested in fashion and current styles and continue to be drawn to department stores which offer clothing from a wide variety of current designers.

Tiffany Plans Smaller Stores For Female Purchasers

Filed under: Jewelry


Tiffany & Co. which just opened their new huge store on Wall Street, shown above, is now expanding in a smaller way. The purveyors of fine jewelry have a plan to open 70 stores that are 2,000 square feet. The stores, tentatively titled Tiffany & Co. Collections won't be where a man goes to big up the big sparkly I do maker. In fact, WWD reports that the stores will feature women's jewelry but no engagement or "statement" (translation: huge mega rocks) pieces. The stores are meant to attract today's women who can buy their own jewelry, thank you very much. Pieces will be priced from just under $100 to $15,000 and the first store is et to open next year.

Saks Gets A New Style

On January 2nd, Saks Fifth Avenue is getting a brand new logo. Or more specifically, they're having an older logo reinvented to introduce an element of modernity into their classic image. To achieve the new look, Pentagram took the classic 1973 script logo, placed it on a black background and divided it up into 64 tiles, all of which can be arranged in an impressively large number of ways and provide a new signature look to Saks packaging. The overall look is contemporary and dramatic, but maintains the elegance that the brand name has come to represent.

The plain, script logo will be prominently featured in stores and on packaging, as well.

[via notcot]



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