News

The Sorry State of Saks

isabeli fontana miu miu fall 08.jpgI finally went to Saks on Friday.

I knew things were bad - I live in New York, I work in fashion, I have lawyer friends and retail friends and finance friends, a roommate from Detroit and parents who aren’t too far, sorry, weren’t too far, from retirement - but seeing Saks in worse shape than Union Square’s Trader Joe’s on Sunday afternoon was, basically, horrifying.

Where YSL bags and Chloe clutches proudly sat are stacks of crumpled $50 cashmere. Rolling racks fill almost every aisle, so stuffed with this season’s merchandise that you can’t possibly see anything without ripping it from the hanger. Marc by Marc Resort 2009 is already 40% off and I found Alexander McQueen sequined leggings on the floor. Someone wrapped Alaia belts vertically around a pole by the Oscar de la Renta and I spotted the Miu Miu dress Isabeli Fontana wore on last February’s runway crumpled in a ball underneath a 50% off buffalo plaid Ralph Lauren coat hanging from one shoulder.

And the shoe salon, the shimmering bastion of exotic footwear so recently honored with its own zip code, looks tragic underneath tumbling piles of shoes that used to cost $1000. If you can wade through the Stuart Weitzmans to the scratched up Fendis, Viviers and Balenciagas, good luck finding your size because the defeated sales people are holed up in the middle of the room, the only place with regularly priced shoes and the only area without a single customer.

I still couldn’t find the handbags anywhere and not a single employee knew what I meant when I said they weren’t in their usual home - probably because they’re temporary employees, (who by the way are wearing jeans on the floor, which is a sign everyone’s pretty much given up).

I left, pouting, not even tempted by $200 Prada shoes. I should’ve skipped the trip altogether so that if, or more likely when, they finally close their doors, I remember the old Saks instead of the outlet version.

Because even though I know how important it is to “get it,” denial’s so much more comfortable.

Comments

avatar
1

posted by guest

Dec 08, 2008 4:21PM

This is a sign o the times my friend. So if you truly feel bad for Saks, I say go! And buy a Helmut Lang puffer for the price of a TripleFatGoose, and the actual shoes Steve Madden copies for the same price as the aforementioned SMs! You owe it to Saks, the economy and yourselves! I also hate to shop under such conditions, but the Christmas spirit is to give give give so go buy buy buy!

avatar
2

posted by guest

Dec 08, 2008 4:22PM

I wonder what and how much spring merchandise Saks bought and if designers are lowering the wholesale prices for their spring stuff. I know one American designer's spring collection price wise has many pieces priced well below his normal price point combined with his regular priced stuff. The fashion industry has gotten out of hand with the money it earned from bag sales and when that starts to disappear how will they cope.

avatar
3

posted by andremichael

Dec 08, 2008 4:39PM

i also was in Saks on friday.

& i was honestly stopped in my tracks: there was just something about Marchesa & "40% Off" that just DID NOT sit well with my soul.
the winter wonderland main floor decor was more appealing.

4

posted by ccollins

Dec 08, 2008 5:04PM

online window shopping just is not as fun now-a-days. everything has a giant red price next to it. i find it hard to be interested in things that don't appear new and exciting. sales don't really get my blood pumping, to me, it just makes everything look boring and old. blah. hopefully they're just making room for spring clothes. (which technically, should not be out for another three months)

collinssnilloc.blogspot.com

avatar
5

posted by guest

Dec 08, 2008 5:11PM

I was at Saks on Sunday and like everyone said, there were rows and rows of temporary racks on almost every floor.

avatar
6

posted by guest

Dec 08, 2008 6:02PM

I know this phenomenon is hard on people, but at the same time, I think what's happening has been a long time coming. Sooner or later, people had to step back and say, "Seriously? $1,500 for a basic black skirt that could be by anybody, including Target?" Designer clothing prices soared to unbelievable highs, and now everyone's looking around guiltily and saying, "Oops. No one can pay this anymore." $200 Prada shoes isn't tragic. It's sensible. The supposed status of buying clothes here or there counts for nothing. Even at $200 the profit margin on those shoes is ridiculous. Retailers and designers alike are being dragged back down to earth, and I think it's no bad thing. Yes, stores will close. Yes, things will be very grim across the board for awhile. But I think the whole retail industry, in particular the high-end retailers and the designers they sell, needed a wakeup call. If no one can afford to wear your clothes, or if they're so very artsy and edgy that few people want to, then you're quite simply SOL.

avatar
7

posted by guest

Dec 08, 2008 6:41PM

I'm sooo confused. People (in the comments) are lamenting that things no longer cost thousands of dollars? Aren't sales a good thing? I thought that was why sample-sale info is posted so frequently.

Never thought I'd hear people fret over not spending as much money ("especially in this economy," as everyone loves to say these days).

avatar
8

posted by Lauren

Dec 08, 2008 6:47PM

Sales are a good thing--but not sales like this. It means amazing companies like Mayle are closing and will continue closing. In the end, hopefully we'll all be better off, as the market "adjusts" itself (meaning stuff won't be as initially expensive and crappy brands will go away). But we're going to lose some valuable products and retailers in the meantime.

And I was also at Saks on Sunday. So depressing.

avatar
9

posted by guest

Dec 08, 2008 7:30PM

#7- It just burns their status-conscious souls a little, I guess. I mean, what value is there in life if their clothes don't cost way too much and everyone knows it?

avatar
10

posted by guest

Dec 08, 2008 8:49PM

I agree with poster 6. The bubble has to pop. Prices were climbing and climbing and climbing and they couldn't sustain themselves. Its life, get over it.

avatar
11

posted by guest

Dec 08, 2008 9:27PM

When that bubble pops how many people in the industry will be out of work? Fashion is a business one where profits matter. People who are salivating at these sales should think about people behind those garments they just purchased at zero to a slim profit for the retailer. Not just the named designer but his or her assistants, the pattern makers, the people that put the garments together, the PR people, the vendors they use for fashion week, the magazines, the sales associate... when that bubble pops it is those people that will be hurting not Oscar, not Marc, not Ralph, not Karl, but the unnamed folks that put that dress together and the unnamed souls that sell those dresses.

I for one hope that lower profits for NYC based designers will not result in them outsourcing production out of the garment district. Those people are the ones that will be and are hurt by these sales and I for one hate the idea of the garment district disappearing. I LOVE fashion and I LOVE nyc and I do not want to see that bubble pop.

The houses that produce fashion that matter, those with a history and a legacy will survive. Can that be said about the younger designers and those lacking the support of big conglomerate?

I'm stepping down off my soap box, I just don't think people seem to realize that this is an industry not a hobby. That these sales and store closings are scary for those at all levels especially those towards the bottom.

avatar
12

posted by guest

Dec 08, 2008 9:32PM

Lol at #9!

avatar
13

posted by guest

Dec 08, 2008 9:46PM

I don't want anyone to loose their jobs but come on, Luxury pricing was way out of hand. Read "How luxury lost it's luster"

The mark-ups were like 3 times the cost to produce (clothing) and you don't want to know for shoes and bags. And, the money was not going to 90% of those who work in fashion as they make under $50,000.

I have a six figure salary and thanks to this November's sales, I finally have the wardrobe I should have been able to afford at my salary.

avatar
14

posted by guest

Dec 08, 2008 10:47PM

I can see both sides of the issue. On the one hand, as a fashion student, I live for sales. However, I did grimace the other day when I saw a bag I'd bought at Macy's months earlier at TJ Maxx. Kind of takes away the "special" feeling and because it's the only TJ Maxx in my college town, people probably will think I bought it there.
Being from Oregon, I haven't hit up the Portland Saks lately, but from what I've heard the apparel industry in Portland is faring better than in other cities.

avatar
15

posted by guest

Dec 08, 2008 11:32PM

Saks is going bankrupt. Deal with it. Better use your credit/giftcards now ladies!

avatar
16

posted by guest

Dec 09, 2008 12:35AM

I know. I just HATE saving money. If I can't pay full price for designer clothing to make myself feel better and validate that I am far superior to those who don't have money what the hell will I do??? I'm soooo depressed. And please 11, those towards the bottom shop at K-Mart, they can't even afford the air in Saks. Get over yourselves.

avatar
17

posted by guest

Dec 09, 2008 4:02AM

Eugenics...something I often find myself thinking about and supporting when I read the comments on Fashionista. Those of you who WANT to pay more for something, something that is not intrinsically worth the price on the tag (although, granted, it may not be "cheap" to begin with) - outta the gene pool.

I think I should start arranging trips to the Baltimore ghetto's or the slums of Bombay so some of you can get things in perspective. A new sort of exchange programme...

avatar
18

posted by guest

Dec 09, 2008 5:51AM

#6 I agree with you 100%
Balenciaga love it, but come on selling boots for almost $4,000 is just absorb! Thats more than the income of the majority of the people working in third world countries. Its about time that the 'high end' designers get a reality check

avatar
19

posted by fauvism3

Dec 09, 2008 9:20AM

Totally agree w/ 11. For those of you who love fashion on the consumer level, the sales are great. But for the people in the industry--just like the auto makers, financial employees, etc--this isn't a joke, this is their livelihood.

avatar
20

posted by guest

Dec 09, 2008 9:21AM

WHAT A BUNCH OF SNOBS!!!
are you kidding me?
this is my favorite time of year because I CAN stock up on all kinds of designer for a fraction of the price. quit bitching and start shopping.
HELP YOUR FAVORITE STORE SURVIVE.
geez!
is it really that hard to get.
get over yourselves.

"something about Marchesa & "40% Off" that just DID NOT sit well with my soul."

YOU ARE A GOOFBALL.

21

posted by bluealvarez

Dec 09, 2008 9:21AM

I think #6 and #11 both have valid points. I work in apparel, on the wholesale/manufacturing side, and I can say that some people price accordingly based on costing formulas, and some way out price based on their perceived brand value. While neither is wrong, I find it hard to believe that anyone who's been doing the latter is surprised at what's happening now.

While I'm upset at the loss of jobs this will cause in many countries, I am hoping this will be a great equalizer for fashion. Once you see that "40%" off sign next to a Marchesa, it becomes easier to realize that the name is not important - ANYONE with the right eye and skills can make something incredible. What should be setting one piece apart from the other is what you, the wearer, thinks about the quality and design, not about the name on the label.

avatar
22

posted by guest

Dec 09, 2008 11:03AM

This is normally one of my favorite blogs, but I was rather appalled by the entry. Your posts are usually funny and sensible, but this sounded like a whiny toddler who just found out her rhinestone stick on earrings aren't diamonds.
Oh no, Alexander McQueen leggings were on the floor! Quelle Horreur! Let's not be sad about the unemployed, the spiraling state of the economy, but let's weep because a designer item hit the floor and no one heard a sound.
I'm a fashion design major and no one loves fashion more than I do, but at the end of the day, clothes are meant to be worn and used. I think it's a good thing that everyone is getting a dose of reality .

avatar
23

posted by guest

Dec 09, 2008 11:08AM

And on top of this tragic scene...

I heard from people within the walls of this establishment that they are starting to let sales associates go for...get this... SPH ( Sales Per Hour)... How on earth can they expect them to make money when Christian Louboutins are $200!!!!

Saks is on its way to hitting rock bottom.

avatar
24

posted by guest

Dec 09, 2008 11:33AM

I love this site but I gotta be honest the snobbery is so bad i can smell it through my computer screen. This was bound to happen, and why are we still equating style with luxury items? I could never afford those pricey items so personally it does not effect me, but to hear someone say they want the old guard of couture to carry on is soooooo sad. i will still continue to shop low end and be stylish while you fools spend thousands.

avatar
25

posted by guest

Dec 09, 2008 11:41AM

Someone needs to get over themselves quickly. You sound like a spoiled rotten brat. Have you never shopped in a store during the HOLIDAY SEASON? It does get messy, things no matter their label end up on the floor. And it isn't surprising that handbags got moved to showcase cashmere, just like EVERY OTHER YEAR. The only difference is sales before the end of the season, and a pouting blog writer who couldn't bring herself to get an awesome deal.

Honestly you don't sound like someone who does shop at saks.

As a former employee you sound to me like the boring girls who came in sporadically to worship, yet never buy, designer stuff. Who would also take up my time with stupid questions that you already knew the answer to, just to see if you could trip up the common salesgirl.

You do realize how awful you make yourself sound, right?

avatar
26

posted by guest

Dec 09, 2008 11:55AM

you all sound awful. what makes you commenters think you are any better with your mean comments and disrespectful tone?

i think the point was that the store is dying. i was there friday myself, it was horrible. there were sales racks haphazardly thrown about the floor with ripped designer items strewn about them, salespeople who simply didn't care if you had a question, kind of pointing in a vague direction if you asked where something was or they were too busy talking on their phones to help, and total disorganization around the store.

most of the readers are too shallow to understand this and simply want to attack someone to make themselves feel better. cheers to you!

avatar
27

posted by guest

Dec 09, 2008 11:58AM

For all of you people making comments about Saks going bankrupt...do you really know anything about the company? Do you know the amount of cash that Saks has on hand at all times and on the books? What about the HUGE line of credit that has been untapped? Or the fact that Saks owns most of its real estate, including the Fifth Ave flagship, unlike any other retailer? I didnt think so....Before you start making comments I would check out the facts, since it is obvious that you people know nothing about the business or about this company. Oh, and please look at November comp sales, compared to everyone else, Saks only posted a 5.2% decline, compared to Neimans at a 11.9% decline and Nordstroms who had a 15.9% decline. But again...none of you would even know that.

avatar
28

posted by guest

Dec 09, 2008 12:03PM

no cheers to U # 26 we all love fashion and thats why we are here commenting back and forth. so why don't you just get over yourself. u took the the time to read the comments didn't you? so stop pretending you are holier than thou. THESE ARE JUST FUCKING CLOTHES PEOPLE, CLOTHES THATS IT!!!!!

avatar
29

posted by guest

Dec 09, 2008 12:33PM

"However, I did grimace the other day when I saw a bag I'd bought at Macy's months earlier at TJ Maxx. Kind of takes away the "special" feeling and because it's the only TJ Maxx in my college town, people probably will think I bought it there."

#14- I'm so sorry that in this time when people are losing their houses and jobs, you will have to deal with your classmates thinking you shop at TJ Maxx. My condolences to you.

avatar
30

posted by guest

Dec 09, 2008 12:48PM

I agree with #26 and I liked the way the writer vividly described the state of the store in her post.

I for one do not want to buy beautifully made clothes if they are on the floor and being trampled on by panicked recessonistas. Just because you're getting a nice discount doesn't mean you should have to settle for a ripped Lanvin dress with footprints all over it. Saks is severely damaging their brand by allowing the store to look like Century 21.

avatar
31

posted by guest

Dec 09, 2008 1:18PM

Comment 27 is right on the money. Saks is taking an aggressive strategy in this poor economic environment. It is true that Saks owns most of its real estate which elimintates a huge variable cost. In fact, Saks just opened two new outlet stores and is opening two more in the spring. Writing off inventory to secure a stable and lasting place in this industry is a smart move if you ask me.

I used to enjoy reading this blog until I read Britt's whining histrionics. If you don't like Saks in its reactionary phase, go shop at empty specialty retailers and boutiques. They would probably welcome your business more anyway.

avatar
32

posted by guest

Dec 09, 2008 2:12PM

I'm so sorry that a company trying to save its financial ass has offended your sense of exclusivity. What will you do now to validate your sense of superiority? I'm sure somewhere there is a boutique that hasn't put anything on sale.

avatar
33

posted by guest

Dec 09, 2008 2:15PM

I'm so sorry that a company trying to save its financial ass has offended your sense of exclusivity. What will you do now to validate your sense of superiority? I'm sure somewhere there is a boutique that hasn't put anything on sale.

avatar
34

posted by Donald

Dec 09, 2008 3:25PM

Baltimore ghetto or slums of Bombay? Like these two things go together? I, in fact, live in a Baltimore ghetto and take offense to that comparison.

avatar
35

posted by guest

Dec 09, 2008 3:35PM

Comment 32 and 33 way to repeat. And if you follow the industry reports at all, you would be well aware that the only retailer from practically all price points which did not choose to markdown merchandise was Abercrombie & Fitch. They believed that by lowering prices they would hinder the company's image and also thought customers will still come through their doors. Well...reports are in and guess who is -10% LOWER than any other retailer...Abercrombie. Get over it and why do you care? If things are on sale, you should be happy and spending, not depressed and blogging.

avatar
36

posted by guest

Dec 09, 2008 4:14PM

WAMP WAMMPITY WAMP

WAHHH WAHH WAHH

seriously, this is hilarious. this post is sooo bloody hypocritical! "sample sale" then "wahhhh, prada for $200! wahhh". give me a break.

avatar
37

posted by guest

Dec 09, 2008 5:38PM

If you really care about the fashion industry, quit the pouting and go spend the same amount of money to buy twice as much stuff. If you avoid the sales, you're just making it harder for the fashion companies to get the cash flow that they need to stay in business. Yes, it's a business, it's not there just to make you feel special and exclusive (although that is sometimes part of their business strategy).

avatar
38

posted by guest

Dec 09, 2008 10:06PM

cry me a river #11. The mark up on designer clothes is insane. Putting them on sale for even 75 percent off still yields a profit.

avatar
39

posted by guest

Dec 10, 2008 5:42PM

A lot of whining...but at the end of the day if we (consumers) dont spend businesses go bankrupt. That simple...
A few people here have made very good points about how all this whining is being done by people who dont get the business cycle or the fact that Saks finances are not'shaky'...
If you really want to help the answer is simple: SHOP!

avatar
40

posted by guest

Dec 10, 2008 10:39PM

here's the situation from the inside.

the store is understaffed and they are still firing people every day. when you sign up to work there you know up front that you have a "sales per hour" quota. a quota which is based on a normal retail day in practice. now that everything is marked down to bits, no one can make that quota. the staff is fighting each other for sales, it's a bloodbath. the sale has turned the clients into maniacs who treat the staff like dirt. the staff in turn has lost it's moral. two women had to be taken out of the store in handcuffs after fighting over a gucci handbag.

women were grabbing designer shoes right out of each other's hands. women tried to climb into the bins as the stock people were bringing out handbags to be put on shelves. security guards had to be posted in the shoe department to control the crowds.

the word in the store is that they are liquidating the stock they've already bought and will not be filing for bankruptcy.
they will close some stores that were not doing well, but the flagship store will survive.


avatar
41

posted by guest

Dec 11, 2008 7:56PM

I wish you people would get your heads out of your asses and realize just what an INSTITUTION Saks is. They were the only luxury segment retailer to RESPOND to the economy and ensure their future within the market by selling the excess inventory. Smart move if you ask me. Saks has, and always will, stood by their Associates. During the Depression, Saks stood tall and continued to grow and provide top notch service to it's clientele. They didn't close then, and they will not close now.In fact, they are opening new outlet stores while other retailers who stood by and "waited" are closing their doors.
If you shop at TJ Maxx and Target, what do you know about Prada etc? Go back to your "blue light specials" and leave the shopping to people who are in a position to support Saks instead of your juvenile bantering.

avatar
42

posted by guest

Dec 12, 2008 10:47AM

I work in the industry and I was stunned by the sale that Saks was having! It was insane but I wasn't upset because I got some really great deals. 70% off the clearance price. Insane!

avatar
43

posted by guest

Dec 15, 2008 4:40PM

Obviously #6 you know nothing about the fashion industry or business in general. If you believe that the profit on Prada shoes at $200 is ridiculous you are mistaken. I don't know what shoe it is but the cost of a Prada shoe to a retailer is far more than than $200 and carries no mark up at all. In fact that shoe at $200 on sale is losing the store between $100 and $200 easily.

Post Your Comment