In the midst of economic turmoil, Saks Fifth Avenue slashed prices by 70 percent in November. You probably heard tales of the fights for Christian Louboutins marked down to $250 from $800, or a Badgley Mischka dress marked down to $295 from $1,000, or Manolo Blahniks marked down to $160 from $535. Good for shoppers like us, but bad for designers, who don’t get a say in the markdowns and have to absorb the costs. Making it worse for labels like Marni or Derek Lam, angry customers march into their freestanding stores demanding the same merchandise at the same 70 percent discount. And when the economy bounces back, how can Saks go back to selling things at full price when consumers expect sales?
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