REFILE-Reuters Summit-ANALYSIS-Price wars to heat up holiday
(Refiles to fix typo in paragraph 3)
(For other news from the Reuters Global Retail Summit, click here)
(For other news from the Reuters Global Luxury Summit, click here)
* Modest price, classic brands seen winners in holidays
* Shoppers still want deals, retailers to supply them
NEW YORK, June 12 (Reuters) - It is a little bit early to tag a must-give gift for the 2009 holiday season, but one thing seems clear in the recession: Cheap, or at least cheaper, will be chic.
From Prada to the Palm (PALM.O) Pre, price will be the name of the game, as shoppers hunt down holiday gifts.
"As you look at the fall offerings, you are going to start to see products from brands ... whether it is the Pradas or the Guccis or the Diors -- you are going to be seeing entry price points that are substantially great values for the consumer," Saks Inc (SKS.N) Chief Executive Steve Sadove said.
With the 2009 holiday season creeping up, executives of top luxury and retail companies at the Reuters Luxury and Retail summits this week said retailers will surely have affordable gifts on shelves, while even high-end stores will carry classic brands at lower prices.
The strategy is in line with demand for a good bargain across price ranges, as job losses, tight credit access and weak home values test consumers in the recession.
"The successful retailers have really looked very carefully at their message to be sure they're communicating precisely what the customer is concerned about, why they should pick you over another alternative," J.C. Penney Co Inc (JCP.N) CEO Myron "Mike" Ullman said.
Even department stores like Penney, which already offer steady discounts, are underscoring good deals for fear of losing out on sales.
"You can trust the price being very, very competitive with anything else you'd find at comparable quality and comparable style," Ullman said.
Saks expects to sell a $950 to $1,000 Christian Dior handbag, while a different, earlier model sold for $1,500. A Prada handbag will now sell for $750 while a different one previously had takers for $1,000. Continued...
