Luxury Institute News

August 20, 2014

Macy’s settles up in profiling case

By: Dan Gorenstein
Marketplace
August 20, 2014

After the shooting of unarmed teenager Michael Brown and the recent clashes in Ferguson, Missouri, racial profiling has returned to the national spotlight.

Department store chain Macy’s reached a $650,000 settlement Wednesday with the New York Attorney General’s office over racial profiling practices, which shows how deep the issue runs. This is the second settlement since 2005 for Macy’s, and the deal comes about a week after a similar agreement was reached with the Madison Avenue luxury store Barney’s.

The most recent investigation has found that African-American and Hispanic shoppers were detained at  “significantly higher rates” for alleged shoplifting than white shoppers.

Retail researcher Paula Rosenblum says racial profiling is frequently an afterthought in the industry.

“They mostly advise their store associates to watch out for people who look suspicious,” she says.

Milton Pedraza, founder and CEO of the Luxury Institute, says retailers have every incentive to train front-line and security staff so every customer feels welcome.

“Even if you didn’t have moral clarity on the issue, at least you should have economic clarity on the issue,” he says.

Pedraza says stealing a shirt is insignificant compared to the additional sales that come from building a reputation as a kind and generous merchant.

For its part, Macy’s has agreed to make several changes, including an effort to improve its anti-shoplifting practices and plans to distribute an anti-racial-profiling memo to workers.

Simma Lieberman, who works with retailers on diversity and what she calls “cultural intelligence” says employers should know profiling is often unconscious. Lieberman trains her clients to monitor their own personal biases. Often, she says, shop clerks are quick to make assumptions, and “they don’t get to behavior, they just look at what somebody looks like.”

The danger, says Lieberman, is in our rush to judgment, when we “assume someone is going to have a certain behavior, which they may not have.”

http://www.marketplace.org/topics/business/macys-settles-profiling-case

February 28, 2014

Buying into bling

By Daina Lawrence
Special to The Globe and Mail
February 27, 2014

Affluent individuals around the world bucked the depressed market norms of the last few years and managed to keep the luxury goods market bustling by investing in alternatives such as art, wine and supercars.

Companies such as Hermès SA, Michael Kors Holdings Ltd. and LVMH Moët Hennessy Louis Vuitton SA are gaining new customers daily, with 10 million new buyers wading into the market each year.

Many of these companies have given good news to shareholders recently, including luxury goods dynamo Michael Kors – known for its footwear, watches and clothing – whose shares soared 17.3 per cent to $89.91 (U.S.) in early February, after the company’s report of higher-than-expected profits.

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://www.theglobeandmail.com/globe-investor/investment-ideas/buying-into-bling/article17132730/