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ST. LOUIS
— Boutiques know that they can attract more shoppers
with sales than regular prices, but if they want to stay
in business they have to wean customers off fantastic
40, 60 and even 90 percent off deals.
When
prices go that low, they are dipping into or below the
wholesale price that the shop paid for the item; that
means they are losing money with each receipt.
"Sales
are a necessary evil for most retailers right now,"
said
Courtney Cothren
, who coordinates the fashion marketing and management
program at
Stephens College
in
Columbia, Mo.
"Once the economy bounces back, I believe consumers
will still shop in this mind-set, and it will be very
difficult for retailers ... to revert back to selling at
regular price."
But
clearance prices are a risk retailers have to take in
order to get out of this downward spiral.
"I'm
not worried that people are in a sale state of mind when
they shop," said
Hillary Dutcher
of Ivy Hill boutique in
St. Louis
. "What's on sale is the stuff that we won't have
again, so if you don't buy it at regular price and it
doesn't make it to the sale rack, you're out of
luck."
She said
that people who see something they like will pay a
reasonable price for it, even if it's not on sale.
Boutiques, however, are learning that the economy has
set a lower standard on "reasonable."
Every
boutique we've talked to in recent months has mentioned
that they have lowered their store price points. In some
cases that means stocking different items with lower
wholesale prices or often playing hardball with
distributors to get them to cut their profit margins,
too.
Where
boutiques thrive is offering unique, specialized
selections.
But every
retailer has to work with items that for whatever
reason, just don't sell. Clearance and sale racks were
standard fixtures even before the economy took a turn
for the worse. Now, however, those sections are bigger
because common wisdom says that consumers are going to
have to spend themselves out of this financial state.
That
means buying new things. Shop owners believe that in
order to entice people to purchase new things they have
to clear out stagnant items that have been cluttering
back rooms and sales floors.
"When
you're sitting on inventory that doesn't sell, you're
sitting on money," said
Natalie Woods
of
Daisy Clover
in
Webster Groves. Mo.
And every
other shop owner echoed her sentiments.
Carla Felumb
of
Mister Guy Ladies Store
in
Ladue, Mo.
, said that in most instances things will sell
eventually, but the wait isn't worth it.
Felumb
said that successful boutique owners have to view sales
as learning experiences. They learn about what doesn't
sell, make adjustments and move on.
Woods
noted that, "Just because something is on sale
doesn't mean that it's not good stuff." It just
means that it wasn't the right stuff at the right time
for their store.
"Some
items are still hanging around because it wasn't the
right size for the person who wanted to buy it,"
Woods said.
Boutiques
tend to offer a certain exclusivity; they only offer
limited size ranges, meaning they might only have one
item in each size or at most two. When the item dwindles
in number, it's just harder to sell one of something
(shoppers are funny that way).
But Woods
noted that she's a proud size large, and said that too
many people are under the assumption that boutique
shopping is for the skinny. Many stores have full size
ranges, but even at her store she notices that larges
and extra smalls migrate over to the clearance rack more
often than smalls and mediums, but she's committed to
offering something for diverse sizes.
Now's not
the time to exclude any more shoppers.
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