The on-going recession has caused a lot of people to cut back on their purchases. Hence luxury retailers like eLuxury have been forced to shut shop. So bad is the effect of this recession that even Neiman Marcus Inc. has not been spared. The luxury retailer has reported a fiscal third-quarter loss of $3.1 million, down from prior-year earnings of $55.4 million due to declining consumer demand. The demand has declined by almost 25% from last year, causing the retailer to suffer huge losses. The combination of declining same-store sales, larger promotions, and markdown costs have caused a decline in the retailer’s overall revenue from $1.06 billion in 2008 to $810 million in the most recent quarter, making it the second consecutive quarterly loss for the retailer. Unless they develop strong and efficient marketing strategies, the retailer is in store for the third round of losses.
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