Luxury retailer Barneys New York is trying to close two of its seven department stores to conserve cash amid a sharp decline in spending among the wealthiest Americans, according to people familiar with the matter.One is the 85,000-square-foot store at the Shoppes at the Palazzo in Las Vegas, owned by real estate operator General Growth Properties Inc., the people said. Barneys is the anchor tenant in the $1.9 billion retail-entertainment complex on the Las Vegas strip…Ben Yang, an analyst at Green Street Advisors, a real-estate research firm, said Barneys’ experience in Las Vegas has been a disaster “given what’s happening in Las Vegas and luxury in general.” …As the recession continues, more retailers are closing stores in posh shopping destinations. Coach Inc. is shuttering four underperforming stores in high-rent, high-profile locations such as Greenwich, Conn., Worth Ave. in Palm Beach and Embarcadero in San Francisco.Coach Chief Executive Lew Frankfort said in a recent conference call that these stores “are very expensive to operate, and we decided that this was the right time to rationalize our approach to them.”
By Rachel Dodes and Karen Talley, May 6, 2009, WSJ

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