Chutzpah award for Saks.
Saks Fifth Avenue, prior to Xmas, told beauty advisors they would be fired in January. It appears that by ridding itself of employees, Saks’ management is shifting financial liabilities to the store’s vendors.
Although vendors already reimburse Saks for these costs, sources say the store will not be liable for the employees’ benefits. And here lies the crux of the problems facing the industry and the U.S. economy
No one wants to hire because of the uncertainties revolving around the health boondoggle being crafted in Congress and the White House. Beauty manufacturers are also finding that sliding department store sales at stores such as Saks makes it far more difficult to fund full-coverage by beauty advisors.
And for the chutzpah award, Saks said that beauty was one of the weaker categories in December. I guess if you’re trying to find a job or renegotiate your employment, you may spend less time selling products.
And for the 9.9 percent sales increase at Saks, this comparison is against an awful December last year. Also, how much of the increase came from Saks Direct and Off 5th.