Fashion is no exception when it comes to major dollar hits from large companies. Luxury brands like Burberry Group Plc and Prada SpA have cut department stores out of their retail distribution line, leaving high-end department stores such as Harrods and Saks with quite a bit of excess selling space. Rather than gambling with lesser-known replacement labels, the companies are reaching within themselves and creating their own merchandise.
Saks, being one of the innovative leaders behind the survival-mode collections, has taken high-end menswear by storm, lowering prices while retaining luxury status, boasting the Saks Inc. name. Thomas Ott, Saks senior vice president of menswear, predicts that his company will take what seemed to be a negative situation and turn it into major growth for the menswear department. Not only will they cover clothing; the team produced tie- bars, cufflinks, money clips, key chains, Italian-made shoes and in the fourth quarter, a Swiss watch collection. “We have invested in all the categories as saw white space that none of our vendor partners were addressing,” Ott confidently commented.
Following Saks, Harrods of London is also leaning on its iconic status to create their own merchandising brand as well. Menswear clothing and accessories will replace $5,000 suit brands like Brioni Roman Style SpA, confirmed Jason Broderick, general merchandise manager. Also enthusiastic about the transition into in-house design, he predicted that private-label fashion is “a growing part of our business with huge potential.”