Released: July 06, 2007

Will high court ruling impact discount shopping?

Source: Jayne O'Donnell and Christine Dugas, USA Today

There’s Prada at T.J. Maxx, Lilly Pulitzer at Syms and a department full of Diesel, Lucky and other designer jeans at Loehmann’s — high-end labels crowding the racks of off-price retailers.

Is the world of discounted high-end apparel now in peril? The Supreme Court ruled last week that apparel and other manufacturers could set a minimum retail price at which their goods can be sold. The ruling might lead more clothing and accessory manufacturers to crack down on discounting.

But this much seems clear: The overall impact on off-price retailers is likely to be slight, for reasons that have little to do with the Supreme Court. Changes sweeping through the retail industry have been opening new paths for designer clothes to reach consumers at off-price stores. And not much seems likely to slow that trend.

“Off-price retailers are going to survive,” says antitrust lawyer Steve Feirman, who represents some apparel makers. “They are a thriving industry, and many manufacturers have an interest in supporting that industry.”

Read Full Article: Will high court ruling impact discount shopping?