US retailers' heavy discounting hurting luxury brands

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.