Friday, 13 February 2009
Kiton at Saks Fifth Avenue
Saks Fifth Avenue has been trying for years to create a Kiton boutique in its New York flagship store.
For the uninitiated, Kiton is an Italian clothing company that makes some of the finest quality suits in the world. Their clothes are handmade by a small army of tailors in Kiton's workrooms just outside Naples. Prices are very high: $7000 for a suit and $1200 for trousers.
Saks unveils their new Kiton store on Monday. Unfortunately, their timing is terrible, opening it in the midst of the deepest economic troubles since the Great Depression. Saks's sales fell 23.7% last month and they are laying off 9% of their staff. Like many other retailers, they're being forced to offer discounts of as much as 70% off just to move merchandise out of the door.
Saks is still talking a good game, and undoubtedly there will still be some customers for these clothes in New York, but they must be worried.
Story in today's NY Times.