Monday, November 23, 2009

Are consumers being manipulated this shopping season

I was reading this article from the New York Times, about how some of the luxe retail stores are intentionally cutting back on their inventory in order to produce a higher sales price. I find this practice disturbing. If you're shopping over at Saks Fifth Avenue in Manhattan, I'd be angered.

This is the part that fired me up

Saks, the chic Manhattan department store, is a prime example. Its inventory is down by double digits compared with last year. That is partly a response to lower demand, of course, but it is also a business strategy aimed at weaning consumers from deep discounts. By carrying fewer goods and selling them at full price, Saks is essentially telling customers: buy it now or live without it.

“Upscale stores want to train the customer that luxury equals exclusivity and that they cannot assume they can wait and they’re able to buy it on sale,” said William S. Taubman, chief operating officer of Taubman Centers, a mall developer and owner.


For those of you who don't watch the financials, last year with retailers slashing their prices, it was brought up as to whether consumers would ever pay full price again.

Exclusivity is one thing, but exploitation is another
SKUSE ME but how do you feel about this marketing strategy

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