ASK THE EXPERT: HOW CAN I PULL DESIGNER BOUTIQUE TRAFFIC INTO MY STORE?

Q: I have been shopping the designer stores, checking out the competition, and the prices are through the roof. Is there any way I can take advantage of the situation by drawing some of their customers to my store?



A: That’s a good question. At this point, we are hearing from our clients that the highest-priced merchandise is what sells best. However, as prices continue to climb, it’s hard to see how this can go on. At some point, there will only be one potential type of customer left, and that customer can’t buy the whole market.

I’ve shopped the stores recently as well, and I saw a lot of potential customers in the designer and better department stores, but no shopping bags. So, it appears that they are already getting hit by these high prices.

As a specialty retailer, one of your greatest advantages is your ability to create an amazing mix of merchandise that appeals to this customer. You can pick the best of the best and offer outstanding client services, which the better department stores have cut back on in recent years.

There is one caveat: if you’re going to play in this luxury sandbox, you can’t just have the best merchandise and great services— you also need a beautiful store. So, if your store needs updates you’ll have to do some investing to make it a luxurious experience on every level.

To answer your question, yes, you can take advantage of the effects of higher prices on designer and better department stores, but first, you have to decide if you want to take on this fickle part of the market.

Photo, top, by Xianjuan HU.