Barneys New York is deepening its discounts ahead of the biggest shopping weekend of the year.
The luxury retailer, which was acquired early this month by Authentic Brands Group and B. Riley Financial, had already begun the process of offloading its high-end goods at 5% to 10% off regular prices.
But today, Barneys is increasing those markdowns: B. Riley subsidiary Great American Group confirmed that the chain’s closing sale discounts throughout Black Friday weekend would top existing reductions for an average of 30% to 35% off on luxury items — with additional promotions for customers who shop in stores.
“Virtually every item across all departments is included in the Barneys store closing sale” — or 95% of all items — “whereas most Black Friday promotions are reserved for select styles only,” a spokesperson told FN.
At Barneys’ closing sale, ABG outlined plans to shutter the chain’s seven existing stores, including the Manhattan outpost on 660 Madison Avenue. As part of the bankruptcy deal, liquidators Great American Group and Tiger Capital Group were granted control of the sale of the retailer’s remaining inventory.
The liquidation — or what ABG CEO Jamie Salter calls a “transition sale” — comes during the critical holiday shopping period, when retailers are banking on end-of-year sales to boost their bottom lines. (According to Deloitte’s annual holiday forecast, retail sales are expected to increase 4.5% to 5% this year, while e-commerce sales are projected to grow 14% to 18%.)
As Barneys’ flagship stores undergo a closeout sale, luxury rivals and other department store chains might find themselves in the throes of heavier competition amid a potential shopper rush to the storied retailer before it shutters its doors for good. Saks, Bloomingdale’s and Neiman Marcus are among the luxury players that experts anticipate could feel some impact as Barneys’ discounts on designer labels lure early holiday shoppers into stores.
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