A few weeks ago, we noted that one of the primary reasons for weak US luxury profits was a glut of handbag inventory at stores like Nordstrom’s and Barney’s (Read: Department Stores are Damaging Handbag Sales). With an overall decline in sales, high-end retailers have been forced to discount their existing inventory, which has the indirect effect of further reducing sales at official flagship stores.
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In response to this challenge, Bloomberg is reporting that department stores are severely curtailing their product lines for the upcoming winter season.
According to Edited, a data-analytics firm covering the fashion industry, the number of new handbags introduced by Nordstrom and Bloomingdale’s fell 23% and 3% respectively, compared with an increase of 5% and 11% the year before. Barney’s is taking the trend to the extreme, introducing a staggering 41% fewer lines in the 3rd quarter, compared to an increase of 46% last year.
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So what should you expect to see over the holiday season? Much less of a selection, and probably, the end of big discounts. Have you been to a department store recently and checked out the handbag section? Are the sales still running? Is inventory lower than you expected? Let us know on BopTalk!
Read related articles below:
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Hermes and Chanel Suffering in Current Luxury Market
Chanel Increases Prices to Compensate for Brexit
Handbags Keep Luxury Afloat
Luxury Market Expected to Bottom Out This Year
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Updated: May 27th, 2017
Comments
1 Responses to “The Luxury Inventory Glut”
There is such over-saturation in luxury handbags. In the Metrpolitan area in which I live there are three Louis Vuitton stores, plus shops in Saks Neimans and Bloomingdales. Same for Gucci. Every other woman in the Washington DC are has a Louis Vuitton bag.