Retailers, consumers and prices
Check Out luxury department store Neiman Marcus saying their sales took a hit as even wealthy customers feel the pinch of the troubled U.S. economy, although the quarter was somewhat bolstered by customers digging out old gift cards.
Neiman Marcus‘ quarterly sales dropped 4.9 percent to $1.03 billion and comparable-store sales were down 1.4 percent.
Those in need of a luxury fix but wary of spending dug into their wallets and found old gift certificates – Neiman said it recorded $6 million in income related to aged gift cards.
Department stores have felt the pinch of higher gas and food prices and difficulty securing credit, issues that have forced customers to trim discretionary spending in favor of the necessities.