What started off as a late sale season has turned into a tornado of additional discounts. This week, we saw a plethora of second markdowns and lots of new designers hitting the discount tables. What’s most interesting is that it appears as if the brands have taken control of the retail market.
Department stores like Saks, Neiman Marcus and Nordstrom no longer control what, when, and how items are discounted. Most of the top retailer’s coordinated markdowns across all retail channels. The trend started with Chanel and YSL a few weeks ago and has extended towards Dior, Valentino, Fendi, Prada, and Balenciaga.
Retail analysts say the internet is killing retail but the real murderer is the big brand. Department stores need autonomy to best serve their customer. Retailers need to be able to review their stock lists, inventory holdings, and demand to assess what items need price adjustments. MSRPs are already fixed, and the brand’s grip is strangling the market and feels awfully similar to price-fixing.
