The "Budget Stores" started in the grand old flagship stores as the "Basement Stores." There was an abundance of space in those wonderful big buildings, but how did they attract people to go underground into the buildings' bowels? Simple formula: create a lower-price, lower-service environment offering great value through a mix of less expensive offerings. The basement merchandise model varied by company with low-price brands, closeout purchases from other brands, irregulars from famous brands, specially developed product and of course, end of …
About Neal Leavitt
Neal Leavitt was a DMM for Bamberger's (Macy's NJ) and a GMM for Gimbel's East with responsibilities that included the Budget Store. He was also a VP for Merchandise Research and Analysis for the Batus Retail Group. He started the Calvin Klein Outlet business and worked for several other manufacturers in their retail operations. He is an instructor at the Fashion Institute of Technology.