The WSJ has put up an interesting story today, “luxury-goods makers are cutting prices on designer apparel, shoes and handbags in the US market. The cuts range from 8% to 10% on most products sold in the US.” Never have I thought that Chanel, Versace, Christian Louboutin and Chloé would slash their prices because all I hear is prices are increasing at least once a year despite of how poorly our economy is. This is great news, any little bit counts when bags are souring to $3000 a piece and shoes are over $800 a pair.
The move to cut prices began with Chanel last month. The French fashion house, known for tweed suits that can cost $8,000, decided to trim its prices by 7% to 10% on most items that are hitting U.S. stores now. “The dollar’s recent strength has allowed us to pass on greater value to our customers,” says John Galantic, the company’s U.S. president.