You are more likely to find us at a PETA meeting than in the fur salon at Bloomingdale’s, and we usually don’t pay much attention to advertising for fur coats. Besides, who needs fur, when you already have, well… fur! (see our picktur). But with everyone’s preoccupation these days with the economy, and the fears of a prolonged economic recession, I guess we have fine tuned our radar to keep an eye on advertising and retail trends.
We just heard a radio commercial advertising Bloomingdale’s warehouse fur sale. Now perhaps they have this sale every year, but I can’t recall hearing or seeing this in the past. If this is a new marketing gimmick by retailers of high-end products, we think it is confirmation that the economic slump has finally reached the luxury goods market.
RoutingByRumor’s economic rule of thumb # 1: You know it’s really a recession when the luxury goods market is hurting, or when you can’t unload your mansion at any price. What’s next? Buy-one-get-one-free deals from Rolls Royce? A De Beers warehouse sale? Buy one Learjet, get the second one for half-price?
Now don’t go running out to your nearest Bloomingdale’s store. The advertisement indicated that the sale is taking place at their fur warehouse, which is actually the Danish furrier Birger Christensen’s warehouse. Birger Christensen / BC International Group (BCIG) appears to be the largest fur retailer in the United States. (As an aside, I stumbled across some interesting info about an action that BCIG brought against another retailer to gain control of the Internet domain “maximilian.com”.)
We’ve read that Bloomingdales is not Birger’s customer, but rather it’s landlord. Birger Christensen leases space in Bloomingdale’s stores and operates the fur departments with their own employees. This, coupled with the fact that the “warehouse sale” is taking place at BC’s warehouse, tells us that it is not Bloomingdale’s holding the warehouse sale, but Birger. It would be our guess that the inventory is owned by Birger, and not by Bloomingdales (or by any of the other retailers where they operate their fur salons).
With BC’s purchase of Evan’s, Inc. almost ten years ago (see this article about Evans’ history), they operate the fur salons in Bloomingdale’s, Carson Pirie Scott, Dayton’s, Filene’s Basement, Goldsmith’s, Hudson’s, Lazarus, Macy’s, Marshall Field’s, Rich’s, and Saks Fifth Avenue stores (see related article, circa 1999, so this list may have changed somewhat). We don’t know if any other retailers use warehouse sales to move luxury product inventory. Our guess is that even if they haven’t in the past, you might start seeing them doing so now, as the economy continues it’s downward spiral. See this New York Times article about a disappointing holiday season for the nation’s retailers.
As the downturn of the U.S. economy continues, we think you’ll see indications that more and more retailers are in trouble, across the board. As we wrote yesterday, we doubt the U.S. economic stimulus plan that was announced yesterday will do much to stem the tide.
If the IRS hurries up with those tax rebate checks, perhaps you’ll get yours in time to run down to the “Bloomingdale’s” warehouse fur sale and do your part to stimulate the U.S. economy. You’ll look stunning in that new chinchilla.
Aw, he’s sooooooooooo cute. Maybe we’ll get a faux fur coat instead.
2/26/2008 Update – Here’s more proof that high-end retailers are feeling the squeeze… This article from CNN indicates that Nordstrom’s sales were down almost 9% in the last quarter.