Sorry, 2009's Clothing Discounts Will Be Less Insane
Clothing retailers are holding off on their crazy, desperate discounts a bit, and plan to discount less aggressively this summer. Why? Women's Wear Daily reports that it's not so much that the economy's improving (it really isn't) or unemployment has stopped rising (it hasn't) but Americans need stuff. Retailers anticipate that they will need to mark down, but not at the desperate levels that have characterized the last six months or so.
There's none of the despair and desperation that characterized the fourth quarter and early 2009 when store traffic screeched to a halt and retailers responded with chaotic promoting. The price cutting now seems more planned and organized and there's a growing sense coming from the likes of Saks Fifth Avenue, Macy's and other big retailers that business has bottomed out despite the rising unemployment rate.
Theoretically, at least. Less fun for frugal shoppers, but better for retail profit margins, I guess.
The Forever Sale: Retailers Slow Pace of Markdowns [WWD]
(Photo: scelera)
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Comments:
@mac-phisto: Heck, I had a hard time finding a store that wasn't having a random sale last week. Express, GAP, AE, Macy's, and a few more actually had reasonable prices for the first time in a while!
@henrygates: Bonus to living in hawaii: for 90% of jobs, wearing a suit is over dressed. Slacks and an aloha shirt FTW. A suit is for court, and major client meetings...and even then its not required.
@GuinevereRucker: Right. What Laura said. Or you could stop buying shirts with holes in them. Don't act like all they have are damaged goods.
I have always gone straight to clearance racks. I NEVER buy anything full price. That's the way I've been since I started working when I was 16.
Part of it is being aware of what certain brands retail for. At Kohls or Sears, you can find one brand on clearance for 5.00 but will pay 14.97 at Nordstrom Rack.
I always think to myself - "is it (insert price here) cute?"
If you wouldn't buy it at $10 and it's $7 and you want it, do you really need it?
I pretty much refuse anything under 70% off. Why pay more now when I can pay less next month?
@xtc46 - thinksmarter on twitter: A Wearable Towel, a lei and a welcoming smile is all that's needed?
Gimme to Hawaii!
The problem with that they'll just raise the "regular" prices more.
God, sometimes buying clothes makes me feel ill.
@MissPiss:
Mostly because it's so heinously overpriced to begin with. I doubt I *ever* buy anything for the list price on the tags.
This. It's all a big retail scam: The "list price" has nothing to do with reality and is intended to make you think you're getting a deal with the advertised discounts.
Stephanie, I agree with everything you said. Know the brands you like and that fit you well, be aware of different stores' pricing on said brands, and shop the sales, not to mention my favorites: TJMaxx and Marshall's, which routinely beat even "outlet" pricing on name-brand and designer goods.
@gStein: You're right. Although I really don't buy clothes at all. When there are enough holes, my wife or mother-in-law feels sorry for me and buys me new pants or something :)
@ElizabethD: Yup, you have to train yourself to ask yourself, is this item really worth X.XX (which is whatever price they are charging). I always take my items to the self scanner or have them price checked by a clerk if there is no scanner to see exactly what an item costs.
I try to buy most of my stuff at yard sales or second hand but that isn't always possible for some things, you will have to fill in with clothing from retail at some point.
The high margins on clothing are not a scam. With clothing in particular you have to stock a huge range of styles and sizes if you hope to sell anything, and your inventory has to change with the seasons so it's not like you can keep it on hand until the last odd-ball sizes and styles sell. This means bringing in inventory is a pretty significant risk, which is mitigated by the large margin (reward). Most other retail goods are fairly one-size-fits all and usually not as seasonal, so the risk is significantly less, and can be sold at a lower margin while still being economically worthwhile for the retailer.










How does this affect me, a Salvation Army shopper with holes in most of his shirts :)