PALM BEACH - Luxury Retail Suffering with the Bad Economy

Worth Avenue retailers make staff reductions in response to the economy
from the Daily News
By Robert JANJIGIAN

Sunday, March 15, 2009

The two largest stores on the Avenue, Neiman Marcus and Saks Fifth Avenue, have reduced the number of employees on their payrolls, although neither would reveal the current number of employees at their island locations. Saks would not disclose the number of associates terminated at its Worth Avenue branch.

Both Neiman's and Saks announced in recent months their intentions to reduce the payroll at stores across the country in response to recently reported losses...

Sales and non-selling support positions were eliminated at the Neiman Marcus Worth Avenue branch as part of a company-wide reduction.

Several jobs were cut at the island Saks, but details were unavailable.

"In January, Saks Fifth Avenue announced a company-wide reduction in our workforce of approximately 1,100 positions, or 9 percent of our associate base," said Lori Berg, general manager of Saks' Palm Beach branch. "Saks is not providing details as to how the individual stores were affected."

Earlier this year, Tiffany & Co. offered employees who meet age criteria a retirement package to reduce overhead and costs across the chain.

Employees were also let go over the past month at Gucci's Worth Avenue store.

Van Cleef & Arpels, which recently announced its intention to relocate its 249 Worth Ave. store.

"We are paying careful attention to the current economic climate....."