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Looking To Restore Full-Price At Racks, Neiman Presses Designers

After seeing designer clothes marked down by as much as 75% in recent months, consumers are challenging high prices. Buyers for high-end retailers such as Neiman-Marcus are, in turn, putting the squeeze on designers to control costs.

Getting consumers to stop waiting for everything to hit the bargain rack is a crucial challenge for the luxury goods business, Rachel Dodes reports. "We have to get the customer to buy [at] full-price," says Rachel Goldberger, Neiman's vp and divisional merchandise manager for women's designer sportswear. "If you offer the value up front, you won't get this discounting nonsense."

Many designers are stepping up to the challenge of creating more interesting products, she says, and are producing smaller, more focused collections. She is encouraged by trends she saw on the runway in Milan last week, including a "strong shoulder" in suits, jackets and dresses that give women a reason to buy new clothes, as well as narrow pants that women will need to pair with long cardigans.

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