[Image via mi michelle/flickr]
Last month, we heard rumors that some stores, unable to pay for spring merch, were bouncing checks to designers. This week, Portfolio looks at the problem in detail. Most retailers didn't want to discuss their strategies for coping, understandably, but the ones that did described a twofold approach.
First, they're buying fewer items from designers—not just because it means spending less money at the outset, but also because they're hoping to wind up with less stock to put on sale. (Shoppers, beware, since this means fewer bargains for you.) And, second, they're focusing on "emotional" pieces, stand-outs that hit customers on a totally irrational level. ""I know one thing—I will not walk into Bergdorf Goodman this year," FIT prof John Micarelli said. "Because if I see the winter coat that captures my imagination, I'm not going to be able to deny myself. And Bergdorf counts on those customers who cannot deny themselves."
· RackedWire: A Recession Query [Racked]
· Retail Darwinism [Portfolio]
· Place Your Bets [The Choosy Beggar]For more stories from Racked, go to racked.com.