I just got back from New York City fashion markets. We picked up two new brands that I’m really excited about—small, independent labels that we hope are on their way to becoming emerging names. Both of them required a 30% production deposit before they could even get started.
That’s pretty typical for new emerging brands. As a small independent retailer, we’re lucky if we get Net 30 terms. More often than not, we’re fronting the money for the inventory we bring in.
Fundamentally, it’s not always fair but its also how credit and banking works in general at scale. These new emerging brands don't have credit facilities and this is how young brands get themselves off the ground. That 30% deposit goes straight to fabric, trims, factory time. Without it, those collections probably wouldn’t exist. Some day these brands will grow and they’ll end up in department stores. But the truth is—it’s the specialty shops, the little guys like us, that get them there first. We’re the ones quietly funding their early production runs.
Now contrast that with what Saks Global just announced. They told all their vendors that starting this spring, they’ll only be paying Net 90—that means brands ship their product, and then wait three full months to get paid. On top of that, Saks is stretching out its past-due vendor balances over 12 months beginning in July 2025.
So while independent boutiques are putting up cash before production even starts, Saks is delaying payment months after the product has already shipped and been sold on their floor. It’s two completely different worlds.
Independent retailers understand what it takes for a brand to survive—because we’re taking on the same risk ourselves. We pay deposits to help fund production, we juggle cash flow daily, and we do it because we believe in these brands. Saks may say they support emerging designers, but Net 90 tells a different story.
The fashion industry loves to celebrate the runway and the red carpet, but the reality is that small stores and small brands are doing what they can to keep each other afloat. It's what's happening beneath the business.