It's a move that raises eyebrows at any time, much less during a bad economy, but high-end furnishings retailer Restoration Hardware is raising its prices in an effort to stand out from the pack.
The chain, which is located in California and operates over 100 retail locations in addition to an e-commerce site, is raising prices by an average of 20 to 30 percent.
Chief marketing officer Ian Sears explained the strategy to Advertising Age:
"When that happens, and you end up discounting as much as we did and as much as our competition did, you, over time, begin to create some level of devaluing your products," he said. "Everyone is talking about value. It's a code word for, 'I'm making cheaper products.' ... In our mind, it necessitated some level of change in our product mix."
He also takes a swipe or two at companies such as Pottery Barn and Crate & Barrel, saying that "many in our industry are focused on reducing quality in an effort to lower prices" — thus spinning his company's price increases into a positive for the consumer, as they would ostensibly be accompanied by better quality goods and service.
