The fallout from the turmoil on Wall Street will be felt by retailers who have set up shop on one of Manhattan’s most prestigious avenues - Fifth Avenue.
In the past week, Lehman has failed, Merrill Lynch agreed to be acquired by Bank of America, and the government had to step in to keep giant insurer AIG from failing.
It has created chaos on Wall Street and expectations of thousands of impending job losses. In August alone, New York City’s securities companies axed 10,000 workers.
It is the exact opposite of what retailers needed headed into what is expected to be one of the worst holiday season in years.
In a research note, Goldman Sachs highlights which retailers may fare the worst.
Wall Street’s financial turmoil heading into the holiday season is likely to negatively impact key NY centric retailers with meaningful flagship
presences.Saks and Tiffany top the list with each of their flagships accounting for 20% and 10% of total sales, respectively. These key stores have been outperforming an already weakened store base as tourism has provided a bright spot. In light of a dampened worldwide wealth effect and strengthening dollar, more modest tourism gains should provide less of an offset to today’s worsening domestic demand.
….Luxury retailers and brands such as Coach, Nordstrom, and Ralph Lauren, are likely to also be pressured this season as waning Wall St bonuses and volatile equity markets erode confidence at the high end. While their NY flagships (Nordstrom is not in NYC) do not carry the same significance as those of Tiffany and Saks, we expect results to be impacted nonetheless
(Photo: Reuters)
Trackback
11 comments so far
Gosh, the people responsible for the financial disaster will not be getting Tiffany diamonds for Christmas this year.
Not to worry, they will still be looking down their noses at the “financially naive”. Won’t be laughing so hard at us, however.
- Posted by arrowrodIf your cabinate have clothing this season u not donate it out . unless u are on credit card then u have to better think of ways to tighten your spending n other things to pay all your debts.
- Posted by visvisThey are responsible for a $700 Billion dollar rescue package, paid for by the average Joe in America that doesn´t even have acess to the services of these prestigious banks, and we are worried that the gentlemen on Wall Street won´t have a good Christmas. I want a rescue package for every American that lost their house, their job and their income in the last four years. Maybe that can even bring back some of the fallen soldiers that went to fight a war that was never suppose to happen. I´ll start by helping: Osama is in Afghanistan and the American tax payer is stupid for bailing out these gentlemen for their short sight of the economic health of America.
- Posted by SergioIf most products are made in china then u paying over priced items.
- Posted by visvisIt’s hard to feel sorry for overpriced luxury stores like Saks and Tiffany.
- Posted by TerriThe way it looks to me, the Bush administration is riding hellbent for leather to rescue the fortunes of Saks and Tiffany–on the backs of the American people. Trust them, yes: to get it wrong. These pardners simply don’t have a track record to suggest that they know what they’re doing.
Just reinstate the uptick rule and see what happens.
- Posted by AchshavTo arrowrod:
- Posted by SamThey’ll be laughing even harder. We’ll get screwed more than they will. The system is rigged and we are “naive” to think otherwise.
Let’s not forget this bankruptcy bill from 2005
- Posted by David Blackburnhttp://www.commondreams.org/headlines05/ 0312-03.htm
And how many morons will be voting for more of the same? Not voting their pocket books but whether someone can get an abortion. What we need in this country is a limit on births. There are too many idiots being born daily. Starting with Sarah Palin!
- Posted by Michael Gracewho can trust a senator who received $126,000 from fannie mae and freddie mac (eventhough he only served for 3 yrs in the senate. 2nd on the list of the most contributions received from fannie and freddie.), who’s friends with tony rezko, jeremiah wright, bill ayers, and louis farrakhan???
http://smelldahcoffee.blogspot.com
- Posted by CarlThe faster the system collapses the better off we all will be. It’s quite hilarious how people have no idea how the financial system works. The fractional reserve system for creating new currency is what has gone wrong, the same system that is responsible for 100% inflation and the interest.
America’s financial system needs to crash, to help wake everyone up to the reality that America is really no different then communist China. Once the our banking system is nationalized, there will be no difference at all. Should be fun to watch all the ‘patriotic’ Americans try to figure that one out.
- Posted by EMerol