Can we anticipate lots of good deals coming?

[DocHolliday]

Originally Posted by Spatlese

I don't know, but I hope many members with closer access to the deals will continue to see it in their hearts to flow through the motherlode in B&S at reasonable markups

Unfortunately, the malaise has spread to B&S. I've just about stopped buying suits and sportcoats because they won't move. If I can find some incredible bargains, I'll pass 'em on, but otherwise, it's a waste of time.

I was glad to see the recent cufflink frenzy, but that's the exception rather than the rule these days.

 

[A Harris]

Originally Posted by DocHolliday

Unfortunately, the malaise has spread to B&S. I've just about stopped buying suits and sportcoats because they won't move. If I can find some incredible bargains, I'll pass 'em on, but otherwise, it's a waste of time..
Yes, unfortunately the economy is affecting resellers and ebay as much as anything else. I'm down 60% and December was my worst month since 2002. I'd say at least half of the small professional sellers dealing with high end clothing will be toast by the end of the year, probably more. Enjoy the deals now guys, but make no mistake - this is going to be bad for everyone in the end. The next couple of sale seasons at least are likely going to be miserable because retailers will be cutting back on orders.

 

[A Guy from Shanghai]

^^ I concur this assessment.

 

[Jacksdad]

things will turn around eventually for ebay sellers. The question is can they stay afloat until then?

 

[unpainted huffheinz]

Originally Posted by Jacksdad

things will turn around eventually for ebay sellers. The question is can they stay afloat until then?

I'll have to keep an eye on the sellers carrying $100k+ in Ralph Lauren inventory.

 

[unpainted huffheinz]

Originally Posted by lee_44106

Recently Paul Stuart had an on-line sale, which I've never seen.

Paul Stuart is a likely casualty of the bad economy. The decision to continue a retail location is Chicago is a classic case of throwing good money after bad.

 

[yawn123_#21]

Originally Posted by fcuknu

This will hurt them in the end. It is better if they keep prices the same and just cut back in unnecessary spending

I agree, cut back on spending and keep prices high. "designer brands" have gone downhill, and I used to see everyone with gucci bags, chanel sunglasses shoes etc. Yes there's fakes among them, but overall, it was pretty much easy access to most people. If they keep prices high they can try to re-establish themselves to the image they want. plus theres still enough of rich people out there to buy stuff to keep them afloat.

 

[A Harris]

Originally Posted by Jacksdad

things will turn around eventually for ebay sellers. The question is can they stay afloat until then?

Uh, thanks for the pearl of wisdom? Saying that things will turn around 'eventually' is not saying anything at all. And the answer is no, most will not stay afloat.

 

[vitaminc]

There will not be "lots" of good deals coming. There will be some sales but it will only go as far as retailers hit their target inventory turns. Retailers are and have been cutting down their inventories significantly (especially the fashionable/seasonal items), and won't have to replenish until there's any sign of life in non-discounted items.

When the supply is forced down to meet diminished demand, price will stabilize to pre-crash times. Worse, price will trend much higher due to strong inflationary environment a year or two down the road.

Gotta exploit the chances now if you are in a financially sound position.

 

[LookSharp]

Originally Posted by samurai

As was pointed out in the L.A. Times recently, luxury shopping is way down. Brands like Vuitton, Hermes, Rolex and Gucci will soon have to face the reality that if they want to stay solvent they will have to offer their goods at a lower and more realistic price point.

Or just as likely downsize their operations and manufacture fewer pieces.

 

[Dewey]

I was thinking the deals on clothing were about done, or going on now.

Many stores were caught with far too much inventory for Fall/Winter 08-09. There was plenty of warning for Spring/Summer 09. Prices could be lower on that merchandise, but there should not be the urgency for sales.

 

[11211]

Originally Posted by lee_44106

It'll be the day when Hermes has a sale.

I heard a story recently of a store that had an Hermes account. They were going out of business and asked for Hermes to either take back the items or waive the provision barring them from marking the items down. Hermes refused both options but did offer to pay for the expenses of burning the stuff. Not sure what happened in the end.

 

[ThinkDerm]

Originally Posted by 11211

I heard a story recently of a store that had an Hermes account. They were going out of business and asked for Hermes to either take back the items or waive the provision barring them from marking the items down. Hermes refused both options but did offer to pay for the expenses of burning the stuff. Not sure what happened in the end.

weird, on hermes's end

 

[SkinnyGoomba]

i think companies like RL who are extremely good at discounting luxury goods, yet retaining a very high end image will survive well.

Where companies like Hermes may suffer due to the fact that they bury their head in the sand, and would rather burn the merchandise then discount it.....

Ralph Lauren sells stuff very well in this economy, there is a downturn such as expected, but the discounts are sooo sweet that its hard to turn down the deals.

Hell even Kate Spade is selling at 75% on some merchandise in their retail stores....hermes needs to pull their head out of there ass, same with gucci and the like.

 

[Gus]

Luxury retail goods saw a drop of 30-34% last fall. Even with sales they couldn't get ride of everything and they need to make room for the Spring goods they ordered a year ago. But even stores like Marshall's have "too much" inventory according to a friend who deals in close-out goods.

Retailers have cancelled a lot of orders or cut back. You are going to see lean inventory this spring but it may take a bit longer for retailers and manufacturers to fully adjust to lower prices. I imagine we will see less cashmere, more classics, less risky styles.

The strong dollar will help us for the next year+ too.

I think the biggest change will be dramatic store closings. I predict that 10-15% of luxury storefronts will close. They were way overbuilt anyway.

Retail analysts have said "consumers now expect sales and may not adjust to full price spending". I think luxury retailers will have gererous Spring sales to keep sales and cash flowing. There isn't going to be a quick fix to this.