Inavero Blog

Saks 5th Avenue sues customer over their mistake

Essentially – a clerk mistakenly sold a $75k+ jewelry set for around $25k.  Big mistake – right?  Well, they called the customer and offered it at a discount off of the regular price, or asked her to return it……problem is she asked the price, was told the price, and purchased the jewelry all at the $25k price and wasn’t willing to return it.

How you would ever think to ask for it back after one of your own employees was responsible for the mistake is gutsy enough, but when that didn’t work, they sued her for the total cost of the jewelry, plus any legal expenses!  Now they have a legal and PR nightmare.  All for the grand sum (at wholesale) of less than $30k.

So, while rival high-end retailer Nordstroms has a book focused on their exceptional customer service Saks is suing their high end clientele.  We don’t do research for retailers, but I don’t need $100,000 worth of segmentation research to be able to tell the savvy Saks management this…..people who will purchase jewelry for $20k and up also hang around OTHER people who will purchase jewelry for $20k and up.  You’ve created a brand assassin, negative press, and a legal nightmare for what?

Well played, Saks….. well played.