Q: I read that Neiman Marcus is expanding into lower-priced goods. Should I do the same?
A: We see this trend toward lower-priced goods continuing for a while, so as you go into market you may want to look to expand you price points if you haven’t already. However, keep in mind that you still need to serve your higher-end customers. Even if sales are down by 30%, 70% of your customers are still buying, so they need to have a good selection to choose from.
When you move to lower-priced goods, you also have to remember that you need to do more unit sales to keep your revenue up.
Date answered: 06/17/2009
Question raised by: Louis P.