Lori Holliday Banks, senior fashion editor at the fashion retail consulting firm the Tobe Report, said luxury retailers such as Neiman Marcus, Nordstrom and Saks have taken major hits in the economic downturn and the surest way out is to focus on loyalty programs.
Ms. Banks said specialty and department stores need to offer something other than just discounts to be successful in the current environment.
"Loyalty stores need to bring about more unusual perks or benefits for their shoppers. Perks that appeal to people who are so busy. The more you can offer to customers who are looking to save and spend, the more they are likely to visit your store and bring you business," she told FOXBusiness.
Ms. Banks pointed to an event that teamed American Express with the designer Diane von Furstenberg as an example. Card members had a chance to attend a runway show during Fashion Week in New York.
"The only people that could buy it are AmEx holders, so that gave them something special that no one could have," she told FOX. "It was an exclusive experience and a novel form of status."
Discussion Questions: What do you think are the best ways for luxury retailers to achieve success now? What do you see as the do's and don'ts when it comes to creating successful loyalty programs for retailers catering to affluent consumers?