Saks will stop deep price cuts

Saks, which took a lot of heat from fashion designers and other retailers for their deep discounting in Q4, said they won't continue the practice, but they are expecting to reduce prices overall, with the help of their suppliers:

Saks said it was expecting its vendors to provide products at price points more in line with the current climate.

The Q4 price cuts, as much as 70%, caused Saks' margins to drop from 37% to 20%, at the same time sales were dropping 15%, Lower margins on lower sales is a nasty combo.