ASK THE EXPERT: SHOULD LUXURY MENSWEAR TURN MORE SLOWLY?

Q: I carry mostly luxury menswear. I’ve noticed that my turn rates are much lower than industry standards. Is this a common issue with fashion merchandise, or am I doing something wrong?

A: This is a good question, and it really highlights the difference between Luxury and Fashion merchandise.

True Luxury merchandise does turn slower than Fashion merchandise. The characteristic of Luxury merchandise allows for a longer life cycle, particularly merchandise that falls into the category we know as “Quiet Luxury.”

It’s not uncommon for merchants to wait two selling seasons before taking markdowns on Luxury merchandise. For example, if you land a Luxury suit in Fall ’24, you may not take the markdown until after Fall ’25.

As for Fashion merchandise, the turn does need to be quicker. The life cycle is shorter — normally only one season, and in some cases as little as a couple of months. Thus, the planned turn needs to be quicker and the merchandise needs to be cleared faster.

However, I would like to caution you that one man’s Fashion can be another man’s Luxury. Be careful how you define your data structure.

Just because an item is the most expensive piece in your store, this does not necessarily mean that it has a longer life cycle than the other merchandise that you sell.

If you have a combination of both Luxury and Fashion merchandise, I recommend classifying them separately. Separate classifications will give you a better understanding of turnover expectations.

Photo by Yasin Gdu.