Roberto Cavalli: Department Stores Behavior is Depressing Customers
Roberto Cavalli says that department stores are being too pessimistic about the economy which could eventually turn off potential customers.
"Departments stores are being very, very careful at this time on making orders," the designer said in an interview at Milan Fashion Week. "They are negative and pessimistic and this they transmit to the final consumer."
European retail sales declined for a 14th straight month in July as rising unemployment prompted consumers to rein in spending. Saks Inc., Neiman Marcus Group Inc. and other luxury retailers are reducing orders this year to limit supply and boost profitability. Wholesale revenue at Burberry Group Plc dropped 28 percent in the first quarter, while Hermes International SCA has said department stores are cutting orders.
It's certainly true that the department store execs are all doom and gloom these day. Is it bumming out their customers? Perhaps. Cavalli says his sales have risen by 9% during July and August and that the company is increasing its presence in Asia.
