As seen over at Retail Dive:
The company is now acknowledging its predicament in stark terms, though it said the situation continues to improve.
“Trends within our business demonstrate that when merchandise is present, topline performance improves,” the company said Thursday. “For example, our concession business continues to reflect strong demand from the luxury consumer, and in our wholesale business, categories that have consistent inventory perform well.”
Saks Global is encountering the scenario that analysts have warned about for months — that the luxury conglomerate’s troubled relationships with vendors were destined to interfere with sales and throw share to competitors.
Concessions are run by brands themselves, eliminating the need to wait on Saks Global for payment.
“Concession and marketplace models are what’s keeping the business afloat right now,” Liza Amlani, principal at Retail Strategy Group, said by email. “Those brands own and manage their own inventory, protecting sell-through and ensuring product flow. Without those vendor-driven models, Saks Global’s position would be significantly weaker.”
