trends: November 2009 Archives

The New York Times reports today on Saks Fifth Avenue and Neiman Marcus's newfound success with intentionally low inventory. The retailers cut order sizes to manage cash flow and expectation; they then spun this as a "get it or it's gone" angle that has led to full sell-through on numerous high-ticket items.

Scarcity as a luxury concept is not new, of course; just days ago the Economist reported on Jean-Claude Biver's success selling watches in the same manner. (Story headline: "Salesman of the irrational.") The retail industry will be watching closely whether this trend holds through Christmas, and if Saks and Neiman can lead a sea change away from deep discounting as the recession starts to ebb.

Retailers are finalizing October sales reports, and the buzzword around them is momentum. Shoppers appear to be regaining an interest in spending, and aggressive cost-cutting tactics by retailers have given way to pop-up stores and healthier vendor agreements.

Timely Demise is sensing, rather pleasantly, that perhaps its moment has passed.