Friday, January 11, 2008

Not a Very Happy Holiday for Department Stores...

We already knew that the Holiday 2007 did not go very well for most department stores and that majority of consumers opted out of buying clothes and instead purchased technology and gadgets for their choice gifts, Women's Wear Daily recently listed the numbers for December sales.

So just how bad was the damage?

  • Nordstrom was down 4%
  • Neiman Marcus down 2.9%
  • Macy's down 7.9% (ouch...)
  • And Saks squeaked by with a 0.8% gain
What is concerning is that not only did major department stores do universally poorly, but also that there is no remedy in sight. The product that has been carried recently has been sub par and not what you would expect from luxury department stores. If the department stores continue to carry brands that are of mediocre design and quality they will not get out of their slump. Also I believe that next holiday the marketing should be significantly improved if the department stores want to be able to compete with technology gifts.

via Luxist

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