Target Announces Collaboration With Neiman Marcus: Do High Fashion and Thrifty Stores Mix?

Ever since Target started doing designer collabs, there's been some hits and misses (like, what's up with the weird fleshy colored pink in half of your stuff, Jason Wu?), but they're fun. I just hope Target controls the resellers better and it doesn't end up a complete mess like the last few, with the people who love fashion but can't afford the high end stuff getting cut out.

This is the best ...

It is possible.....

And since when was target a thrift store? Its more spendy then walmart

Shareholders want to see profits. If it adds to killing some snobbery so much the better.

Target has a much higher level of taste than K-Mart or Wal-Mart, and we enjoy shopping at a Super Target near our home in downtown Orlando. This could be a very interesting and attractive collaboration with Neiman Marcus. Go target!

Why wouldn't they?

Target and Neiman's just don't mix IMO.

Wrong.... You can't bring up Target by bringing down Neiman Marcus.

Simm's outlet stores seem to make it work.

Syms is in bankruptcy and has closed it's stores.

It is a sign of the times. Food trumps clothing, but there will always be a segment seeking compensation. Rotating stock downline will service that segment while the staple products cover the fixed cost. The seemed to do well when people had more disposable income and energy was not artificially high.

I wouldn't think Neiman Marcus would need to do this, considering there are more millionairres than ever and they don't have to worry about choosing between food and clothing. I'm curious to see what merchandise will be offered. It's only for a short period of time. Target does this annually with household accessories from around the world and they have some very nice pieces.

It is just another ploy to maximize the bottom line. If they can clear the shelf inexpensively and continue to make a 50% markup and replenish the shelf with 200-300% markup items the avoid the worst inventory evaluation model, FISH (First In, Stiil Here). Inventory turnover and carrying costs are prime considerations in a merchandising operation.

The bulk of Neiman's customers, like taxpayers are in the middle class. Likewise, the bulk of Target's customers are in the middle class. The target the same customer base, but overhead costs differ significantly. This affords them the opportunity to sell at a profit instead of taking a loss to clear the shelves for the next cycle.

Does that make sense?

It makes sense, but I'm not sure I agree with your assessment that Neiman Marcus customers are middle class unless they're VERY upper. Maybe I'm out of the loop, but the Neiman in Manhattan draws an upscale crowd.

Its their demographics, not mine. I only did the systems analysis for a couple of projects. Actually, they paid for the marketing survey.

If you are in merchandising, it is imperative that you know your customer. Granted, the middle class customer does not buy their kid's school clothes there. They do, however, buy some pretty nice things for themselves. Yes, they have some very high end items, but what pays the overhead are middle class.

The velocity of turnover determines what keeps the lights on. The really big stuff is icing on the cake.

I can't argue with someone who's in the field and has done the research. :) I do agree that regardless who your customers are, the merchandise has to move - the sooner, the better.

High fashion at Target?!!? NOOOO!! Target has some good clothes, we don't need to ruin it will some fancy crap.

Macies hasn't done a descent job of it. I hope Target and Neiman Marcus can do better.

Sure why not?

High fashion is never in a place where you can find discounted soda on sale.

costco is hot

If the price stay in line with the store like Target.

They will find a willing market so long as the price is right.

When you see high fashion brands come to stores like Target and Walmart, you are actually only paying for the name and logo, not the quality that you would have gotten originally. The fact is that you can not mass produce something that used to be hand-crafted and still expect the same quality.

I completely agree with you!

Not always though, it has to be done right. The Versace/ H & M line looked very tacky and cheap because they weren't using high end materials to craft the pieces

omg that is awesome!

Kmart and Martha Stewart
http://images.businessweek.co...

All high fashion items are eventually found in thrift stores are they not?

match made in heaven!

yeah and I liked that blue dress, but I wasn't going to fork over $50 at TARGET. That's REALLY ridiculous

yes

they can...