Posts Tagged retail
Beginning in fall 2011, retail prices are predicted to jump an additional 10-15% or higher than they currently are set.
During the recession companies were forced to offer a better value for their products but with sudden surge in the economy, companies are dramatically increasing their merchandise prices, which will negatively impact consumers.
“This is the first time in a decade or more that we are seeing some inflation that is quite high,” Glenn Murphy, Gap Inc. chairman and chief executive officer stated.
This escalating issue will be more prominent towards mass and mid-tier retailers like Wal-Mart Stores Inc., Target Corp., Kohl’s Corp., J.C. Penney Company Inc. and The TJX Companies, Inc.
“You will see some price increases, but you will see it affecting the lower-end basics and commodities, such as underwear, a lot more than the luxury, designer end,” Saks Inc. chairman and CEO Steve Sadove said.
This rise in price of raw materials has a lot to do with this issue.
For more information visit wwd.com.
According to WWD, Ann Taylor expects increased sales later this year. The popular retailer expects an increase around 3%, showing that sales in the past year maintained a steady rate. There has also been a significant increase in recent sales for Ann Taylor, thus a jump in the stock price. This increase in sales could be due to the price point of Ann Taylor, which satisfies the reduced budget of a customer who is not currently shopping at higher-end retailers, but still appreciates quality. One may assume that the retail economy, or at least Ann Taylor, is nearing the end of the recession.
Following in the footsteps of H&M, Target, and J.C Penney, Macy’s is about to sell its first designer collaboration in their stores. The first collection will be designed by Kinder Aggugini, a designer who is a rising star in London, yet relatively unknown to the U.S. (his designs can only be found in New York and Ikram in Chicago). Aggugini was attracted to Macy’s idea of a line that looked off the runway but was still affordable.
The collection, debuting in February, will be priced between $50 and $300 and sold in 250 Macy’s stores. Aggugini’s designs are described as a marriage between Chanel and Sid Vicious, and the collection will include pieces such as silk shorts, cardigans, sleek military jackets, tailored leather jackets, and much more. “The idea is to give it a chic look that feels sexy and edgy, and best of all, you can afford it.” says Aggugini. For more information go to nytimes.com.
Lanvin is the newest high-end fashion designer to partner with H&M. The Lanvin line will consist of menswear and womenswear, and will be unveiled on Nov. 20 in North America and on Nov. 23 everywhere else H&M is located.
This partnership will create a larger client base for Lanvin since their clothes will be sold at a much cheaper price in an everyday store. Lanvin is not the only designer in recent history to form a partnership with H&M in order to widen their client base; previous designers consist of Karl Lagerfeld and Stella McCartney.
H&M will preview the new Lanvin line on November 1 on hm.com. Read the full article from The Huffington Post.