US retailers' heavy discounting hurting luxury brands
Promotional sprees at department stores tarnish brands and train consumers to expect special deals
New York
AS retailers rely more heavily on promotions to drive traffic, Michael Kors Holdings Ltd and Ralph Lauren Corp have been two of the biggest victims.
The brands were among the most heavily discounted at upscale US retailers in recent months, according to Edited, a company that crunches data for the fashion industry. That supports the view of Michael Kors chief executive officer John Idol, who said that promotions reached an all-time high last quarter. Fashion brands and retailers slashed prices on products by as much as 80 per cent in May, June and July, Edited found.
While the promotional spree has shown signs of helping pull department stores out of a funk, the trend has tarnished brands and trained consumers to expect special deals. In July alone, about 2,400 e-mails touting specials were sent to shoppers across the US, according to Edited. That environment is espe…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece
P&G raises annual core profit forecast on resilient demand, price hikes
Cordlife calls for trading halt after shares sink to all-time low, pending announcement
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
Swiss watch exports plunge as China and Hong Kong demand dries up
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO