The New York Times reports that Saks Fifth Avenue, Neiman Marcus and other luxury retailers are deliberately stocking fewer luxury goods.
The strategy is 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.
“What’s luxury retailing about?” Mr. Sadove (chairman, CEO of Saks) said. “It is about a scarcity of supply.”
This could work. Take Pima Canyon, instead of 18 homes for sale, the home owners get together, draw straws, and stingily dole the listings out, so there’s never more than 2 or 3 for sale. Hey, if you want Pima Canyon …
“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.
You got that.