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    Summer End Round Up; Part 1

    It hasn’t even broken 90 degrees on the east coast this summer but stores are already starting to remove their spring/summer merchandise from their stores. Being that it’s coming to the end of the season we thought it would be a good idea to take an inventory of the sale environment.

    Bottega Veneta: There is nothing left. Everything besides a few pair of shoes have been removed from the store. The only markdown was 50% and that sale started in early May.
    Angeline 212-371-5511

    Chloe
    “Get in here as soon as soon as possible,” an eager sales person told us. There’s still some merchandise left but it will be leaving June 19th. The discount has been 50% off since May.
    Incus: 212-717-8220

    Christian Louboutin
    In late May, we reported that the Louboutin boutique reduced their shoes to 40% off and were assured that they would not be reduced any further. We were sceptical with good reason. As of now, the current discount is 50% off. We are told there is still a good selections of sizes and styles including shoes that you can actually walk in.
    Erich 212-396-1884

    Dolce & Gabbana:
    The discount is still 50% and we are told, “We only go up to 50% for now on.” The boutique, however, just held a private sale off 70% off sale for friends and family. (The invite got lost in the inbox accidentally, sorry.) Give it a week or two and we expect to see that same discount offered to the public.
    Cono 212-249-4100

    Gucci:
    There is still a nice selection of ready-to-wear. Most of the cloths are 60% off but there are a few pieces like a white blazer, a dress and a basic pair of pants that have been reduced to 75% off. We think there will be another markdown before summer is officially over.
    Nora 212-717-2619

    Lila Dishes for the Boston Herald

    It seems as if the bitter economy is taming the Bridezilla. Lila’s New York Times quote resurfaces in the Boston Herald as jewelers discuss how much customers are cutting back.

    “The half-carat is the new 3 carat,” designer sales blogger Lila Delilah told The New York Times [NYT] on Tuesday.

    “God, I hope not,” said Sevag Zargarian, owner of Boston Ring & Gem , located in the Jewelers Exchange Building in Downtown Crossing. “I’d say 2 carat is the new 3 carat. Or a carat and a half is the new 3 carat. Couples aren’t going for ostentatious. Maybe the can’t afford it. Or maybe they feel guilty.”

    Click here to read Lauren Beckham Falcone’s article Sluggish Economy Slays Bridezilla. If the poor economy is the death of just one thing lets hope it’s the Bridezilla.

    Failure of CIT Group is Big Trouble

    The retail environment is about to get a lot worse as CIT Group, the leading financing company to the apparel industry, looms on the brink of bankruptcy. In a last ditch effort to remain solvent, the bank applied for a second round of government bailout money. Their application, however, is expected to be denied.

    What does this mean to a company that creates more than $60 billion in finance and leasing to small and middle market businesses and is the largest factor to the garment industry?

    One mid-sized clothing manufacturer we spoke to said that if things don’t clear up, and clear up fast, they might as well just hang a gone-out-of-business sign on the door because, “If they go bankrupt we go bankrupt.” The sentiment is the same all over town.

    It’s going to cost Seventh Avenue a lot of money to weather this storm. First, apparel companies will have to overcome the fact that they may never receive the money CIT Group collected on their behalf for the previous season. Then if they can get past that– which many companies can’t– they will have to borrow money at a higher percentage from smaller banks. These higher operating costs are occurring at the same time as retailers are asking brands to lower prices.

    Higher costs and less profits mean that many of out favorite brands will not exist when we start our Christmas shopping this year. For this reason lets hope CIT Group doesn’t go down the same path as Lehman Brothers.

    Bloomingdales Clearance Sale

    Bloomingdales has started their clearance sale where designer duds are up to 85% off. Brands like Armani, Ralph Lauren and Marc Jacobs are now all an extra 50% off the reduced price.

    This M Missoni tank dress started at $545 and is now $164! When this sale starts the good stuff goes fast so we suggest going now. After all, Bloomingdales does not have the most desirable selection to begin with.

    Prada Friends and Family 70% Off

    This is the end of the line for spring/summer at Prada. Prices at the boutiques are now 70% off for “friends and family.”

    Worried that you’re not related or bffs with anyone who works at Prada? Don’t fret. Lets put it this way, everyone who walks in the store and buys something is a “friend.” The sale starts Friday and runs through Sunday. By the end of the weekend, however, we predict that there will be next to nothing left.

    Here are a few examples of bag prices: A soft sided nappa leather hobo is now $450, a Nappa B is now $700 and a rose umbra to black with gold hardware is now about $650.

    clarification: It appears as if the high volume of calls from Mad-Spy readers has caused some Prada sale associates to become more strict about the sale than usual. I appologise for any inconvience.

    Contact:
    Madison Avenue: Janik 212-327-4200
    SoHo: Michel 212-334-8888

    Madison Avenue Changing- MadSpy TV Episode 1

    Madison Avenue is one of the most famous shopping destinations in the world. It attracts the highest level of luxury goods and those who love to consume them. It is a destination that draws people from all over the world and is a location that reflects the desires of those who live in the neighborhood. In the first episode of MadSpy TV, Lila Delilah hits the streets to investigate how the Avenue is changing.

    First Lila speaks to store owner Paige Gamble, to talk about how the perception of luxury is shifting. Then Lila chats with AJ Camhi of Murry Hill Properties. to discus the changing real estate landscape. Lila later hits the streets of Madison Avenue to speak to shoppers just like you to find out what changes you have noticed.

    Manolo Blahnik Sale

    The Manolo Blahnik sale has started but the discount is a bit disappointing. The markdown is just 33% where last season the sale ranged from 50% to 70% off. One good point, however, there are “lots and lots of styles and sizes to choose from,” out trusty sales associate confided.

    Unlike the previous sale, there are not many exotic shoes included in the discount. We are told that there are only a few snakeskin styles included in the markdown.

    So will the discount go further? We expect so–just give it a few weeks.

    Contact: Abby 212-582-3007

    Saks Extra 50% Off

    Sale season is just starting to get interesting. Starting Thursday, Saks is taking an extra 50% off sale merchandise that was already discounted 30% for a total of 65% off. The previous markdown was up to 60% off.

    This extra promotion is only running through Sunday and then prices supposedly return to their present markdown. Is 65% really the final cut? Nah, the best sales come during consolidation when prices sink to 75% to 85% off. Now that’s a sale!