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PostHeaderIcon Low Inventory at High-end Stores Could Frustrate Holiday Shoppers

Article Source: Online Shopping Store

Bloomberg reports that two shoppers – Jennifer Prentice and her friend – entered Neiman Marcus, Saks and Nordstrom stores looking to spend but left frustrated because they couldn’t find much to buy.

“We tried really hard to spend money,” said Prentice, 42, a Minneapolis resident whose favorite brands include Missoni, Trina Turk and True Religion. What they got was “really frustrated.”

U.S. luxury chains may stand to lose more sales to shoppers like Prentice as they remain wedded to conservative plans for high-end inventories and are unable to shorten delivery times for designer clothes, shoes and accessories, said Stacey Widlitz, a retail equity analyst at Pali Capital in New York.

“The luxury retailers may be caught short when there is a turn,” Widlitz said in a telephone interview. “Investors should keep in mind that that may delay their recovery behind other retailers, because it will take them more time to get inventories up to speed.”

Two frustrated shoppers certainly doesn’t mean all shoppers won’t find what they are looking for but high-end retailers like Saks, Nordstrom and Neiman Marcus have been reducing inventory. The reductions could make shopping more difficult this holiday season as some items become hard to find. Retailers are in a difficult position – they don’t want to be stuck with unsold inventory but they also don’t want shoppers to leave frustrated because they couldn’t find what they wanted.

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