News in the fashion industry these days gets bleaker. If it were a style, I would call it “Chic less Gothic”.
Luxury retailer Saks Fifth Avenue continues to struggle with creditors, brands and vendors and customers. After taking over rival Neiman Marcus, the supposed synergies have not magically appeared. Instead, the New York company is now on the verge of bankruptcy. With forty-two locations, the department store chain stands on the brink of implosion. The promised turnaround strategy putters without a clear sign of a rosier outcome. How long will companies continue shipping to the New York chain remains to be seen? Shoppers have made their feelings known as sales have fallen by 16% across the upscale nameplates, Saks, Neiman Marcus and Bergdorf Goodman.
The “Made in Italy” label once stood for the best craftsmanship. Today the shine is tarnishing. Scandal after scandal dilute the one produce tag line. As the latest unfolding negative headline on Loro Piana becomes clearer. Questions are swirling. What is the depth of sweatshop labor and outsourcing? Reports of labourers paid 5 euros an hour with 90 hour work weeks producing for luxury brands selling pieces price tagged at 3000 euros have taken a toil on buying sentiment. The usual statements press release statements of investigating or reviewing supply chains are ringing hollow. Except now buyers are paying more attention. Why pay so much for something made for pittance by exploited migrants?
Staying on the luxury fashion subject, consumers are no longer making aspirational purchases. Inflation and other worries take priority over buying latest handbag or shoe style. Sales in major markets stumbled in 2025. LVMH lost 9% while Kering Group’s main header Gucci dropped by a whopping 25%. Clearly a customer shift is occurring. Some argue fatigue is one explanation, others believe the brands raised prices to the point of outright consumer resistance. High end clients are shifting towards experiential buys lured with stories attached at the end, an exclusive cruise or a mountain top picnic.
The Fashion Industry always reinvents itself which is a good thing. Fashion should not be predictable.