We’ve seen some deep discounts, as retailers try to accommodate cash strapped customers and keep their companies in business at a time when shoppers are spending less, but some stores have tried to weather the recession without cutting their prices.
High-end retailer Abercrombie & Fitch has yet to cut prices, but after another huge sales decline, they announced yesterday that they will begin selectively lowering average prices. Saks also said they will begin offering more low-price items and introduce a private label menswear brand that is less expensive.
Coach has already responded to their customer’s buying power, and is offering less-expensive versions of the same purse or apparel, so that consumers don’t have to switch to cheaper brands.
Despite luxury brands cutting their costs to appeal to customers, it’s clear that shoppers still love discount merchandisers like TJ Maxx and Marshalls, which saw a 31% increase in profit in the second quarter.
http://www.usatoday.com/money/industries/retail/2009-08-18-prices-discount-retailers_N.htm?csp=34
Tags: consumer, discounts, economy, saving money, shopping
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