Tuesday, December 4, 2012

Sales of Target + Neiman Marcus less than stellar...

After Target posted an unexpected decline in November same-store sales, expectations had been that its upscale collab with luxury emporium Neiman Marcus could help give its December holiday sales a much-needed lift.  But according to WSJ-Marketwatch, early indications of demand for the designer collection looks to be less than stellar.

“We had high expectations following a warm reception at a NYC one-day pop-up shop on Nov. 29, with over 6,000 attending,” said Citigroup analyst Deborah Weinswig, adding she visited the Target store in New York on Saturday when the collection was officially launched. “We were disappointed by in-store execution. The collection was tucked in the back of the store, shelves were full and messy, and we saw little traffic.”

She added her contacts across the country relayed “similar accounts of in-store experiences.” While J.P. Morgan analyst Christopher Horvers had a more positive note, he noted disappointing sales. “It appears that the collection clearly was a traffic driver to the stores, but product sell-through from our small sample set seemed soft,” he said. “The collection clearly generated less excitement than the Missoni launch.”

But Horvers is still giving the collection some benefit of the doubt. He noted the launch took place at a time when it’s typically a lull during the holiday shopping period. “There’s a long way to go before Christmas,” the analyst said. And as an indicator of future demand, the analyst noted several items on Neiman Marcus’s website were listed as sold out. On Monday morning, Neiman Marcus’s website showed sold-out items including a $59.99 Judith Leiber compact mirror, a $50 Diane von Furstenberg yoga mat and $8 Rodarte wrapping paper. They were all listed as still available on Target.com, indicating that Neiman Marcus’s “customer may have a greater affinity for the designers,” Weinswig said.

Target's spokesman Joshua Thomas responded to say that anywhere from 20 customers (in Miami) to more than 150 (in Minneapolis store) lined up outside of its stores before the opening on Saturday. Online traffic also was “on par” with that of Black Friday when the collection was launched, he said. It “wasn’t intended to be a one-day shopping event,” he said, adding the discount retailer “more than doubled” its inventory for the collection, as compared to Missoni for Target, to meet “anticipated demand.”

Meanwhile, I've noticed that all my local stores still seem to be pretty fully stocked with merchandise from the collab, as is the case at this downtown Chicago store (shown here, courtesy of Racked.com). People just don't seem excited about this stuff, which has me wondering if - and when - the merchandise will go on clearance.

8 comments:

charcoal and lime said...

My very small town store is fully stocked too. I don't really have anyone that would understand/appreciate some of the gifts. Don't get me wrong. I want it all, it just is crazy expensive for a small town.

Redsoxfanzy said...

Regardless of the "name brand" association, I will wait for things to go on clearance. Some of the prices are so ridiculous, they are hilarious!

floating thru fields said...

I still haven't been to look at it which is unusual for me.....maybe this weekend.

http://floatingthrufields.blogspot.com/

Sara said...

I haven't even been to my store to see what they have–it's so expensive! I really wanted the Marc Jacobs zipper pouch but I'd rather buy a used, not "Marc Jacobs for Target" one for those prices. Fingers crossed that some of the stuff hits the 75% off end caps.

67da3346-3eea-11e2-a6aa-000f20980440 said...

Ditto, the ones in Jersey are fully stocked. The Rag & Bone shot glasses are the only ones I purchased. Their man's/boy's sweater is just plain ugly. It looks like something a crazy person would design.

Kate said...

I love alot of the Merchandise, but I simply just can't shell out 70 dollars for a Marc Jacobs scarf or 150 for that lovely suitcase. Really hoping these hit clearance; the "return by January 5" thing makes me wonder if they will at all.

andrea said...

I just saw one of the Atlanta stores fully stocked. They had it in the oddest place, though - the girls clothing department! The prices are pretty high for Target and the only thing I saw that I'd really like to have is something I can't afford - the Alice and Olivia bicycle.

Mary Hall said...

Just posted on this, it's not selling in Los Angeles. I think the price point is too high for the quality

I linked to your post here> http://www.therecessionista.com/2012/12/the-recessionista-reviews-the-acura-ilx.html

Mary