The quarterly results for Saks Fifth Avenue came in and it seems that the company is doing fairly well… even better than super value chain Wal-Mart.
Saks made a $19 million profit and sales rose 7 percent to $667 million.
This could be due to several reasons, the biggest being the one of the most profitable stores being the Manhattan's flagship store located near Wall Street. Due to many spring bonuses and fear of missing out on styles and size, customers snatched up fashions very quickly.
"A year and a half ago. . . people were asking me, 'Will anyone ever pay full price again?'" said Saks CEO Steve Sadove. Now, "there's a return to scarcity, which is what luxury goods are all about."
Another big reason could be that many Wal-Mart customers are a different breed of buyer. They are using government benefits and food stamps as unemployment increases. And with rising gas prices, shoppers are forced to make fewer trips.
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