It seems the news is getting worse by the minute for luxury retailers, but it’s starting to look up for the rest. Consumer spending has seen and upward trend in late February and March, and the shareholders of Saks, Ann Taylor, Liz Claiborne, Quicksilver, and Macy’s are feeling a little more optimistic about the future.
But the retailers that can’t stay relevant in this economy, in other words the retailers that don’t offer up lower cost products, are just digging themselves deeper and deeper into a hole.
Here’s a wrap-up:
Beauty sales, in general, are plummeting.
Tiffany’s earnings have fallen 76% and the retailer’s still too stubborn to lower prices.
DSW had a rough quarter, but Sketchers plans to grow its business in South America.
Luxury menswear designer Thom Browne’s on the brink of bankruptcy.
As companies suffer, so do their charities.
Wet Seal’s not doing so hot.
H&M profits fell 12%.
Hugo Boss has had better days.
Jeweler Charles and Colvard report a 47% drop in sales.
What about jobs?
Barney’s is letting go 76 employees.
Wal-Mart (yes, Wal-Mart) is shutting down an optical lab and in the process, cutting 650 jobs.
Swarovski Crystal is laying off 650.
Active Ride (skateboarders and surfers know this one well) has filed for Chapter 11.
Maybe we should all start thinking outside the shoe box, like suit maker Canali, which has just purchased a software company called Datafashion.