4
| News |

Taking It Off the Top for the Economy: What The Lodge and Neimans Have in Common

^
Keep Dallas Observer Free
I Support
  • Local
  • Community
  • Journalism
  • logo

Support the independent voice of Dallas and help keep the future of Dallas Observer free.

Observer contributing photographer Brandon Thibodeaux landed himself quite the gig: shooting local strip joints for today's Wall Street Journal story about how gentlemen's clubs are "striping down" (hawhawhaw) their upscale offerings to lure in customers afeared of dropping major coin in a down economy. All the usual suspects are there, among them The Lodge (where they've "lowered drink prices and extended the club's happy hours in a program marketed as 'the Lodge stimulus package'") and Rick's all-nude Club XTC.

And speaking of local businesses getting national attention for going downmarket, there's this analysis concerning the fate of Neiman Marcus, which yesterday reported (yet again) precipitous declines in quarterly revenue. During Wednesday's conference call, CEO Burton Tansky revealed he's taking Mister Stanley's store in a whole 'nother direction:

In order to offset lower sales, the company disclosed a merchandising strategy which will mix in more lower-priced goods while still trying to maintain the premium image. "We're not vacating the top price point," CEO Burton Tansky said on the conference call. However, implementing the strategy will take time -- in the meantime, the company will continue to offer promotional events to try and boost sales, and also described cost-cutting measures which are expected to reduce capital spending in its next fiscal year by 25%. Earlier this year, they announced plans to reduce the workforce by about 3%, on top of the roughly 18% they have cut over the last 2 years. They will also re-examine planned store openings and work with suppliers to obtain a better product mix.

Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.

We use cookies to collect and analyze information on site performance and usage, and to enhance and customize content and advertisements. By clicking 'X' or continuing to use the site, you agree to allow cookies to be placed. To find out more, visit our cookies policy and our privacy policy.

 

Join the Observer community and help support independent local journalism in Dallas.

 

Join the Observer community and help support independent local journalism in Dallas.