Luxury retailer Neiman Marcus noted its sales falling by around 20 percent, amounting to $1 billion for the 13 weeks ending January 31, 2009. It incurred a $509.2 million net loss, while in the same period last year it had earned a net profit of $44.3 million.

To battle the current economic tightness, Neiman Marcus indulged in incentives for consumers like a direct-mail offer of giving a $500 gift card for those who took second-hand suits into the retailer’s stores for charity donation. Also it is considering slashing prices of its products, like $200 off on its handbags which are being tagged at over $750. The retailer attributes the losses it has incurred to the $560 million impairment charge it took on to reflect the devaulation of its goodwill and trade names.