'Shabbos robe' sellers struggle to survive
By MICHAL LANDO, JERUSALEM POST CORRESPONDENT
Come January 1, the 29 retailers across the US and Canada that sell loungewear and hostess gowns are slated to begin a coordinated sale, months after the usual sale time. The legality of such an agreement, however, is questionable under US antitrust laws, which forbid businesses to collude to keep prices high.
A growing concern over the survival of this niche market led a group of retailers and manufacturers this summer to form the Loungewear and Hostess Gown Council, which synchronized sale dates and markup prices. Sales are scheduled to be held on January 1 and on July 4, 2008, and the markup price for shabbos robes increased from 50 percent to 65% above wholesale.
"We, as a robe business - unlike any other business - have something very unique to give the religious customer," said Beverly Luchfeld, president of Raza Designs, one of the most popular manufacturers of shabbos robes. "Most of the other merchandise can be found in Walmart, Macy's, etc., but we cater to the needs of this unique customer and should therefore be able to profit."
The robes, an essential part of most haredi women's wardrobes, are typically bought twice a year - before Succot and Pessah. They are designed to be elegant enough to honor Shabbat and holidays, but comfortable enough for women to wear even while working in the kitchen.
"They look like an evening gown, but fit like a jumpsuit," said Luchfeld, who also manufactures weekday robes, modest Christian clothing and Muslim garb "reflective of an era past."
"You can wear them all day, sweat and entertain in them, and even sleep in them," Luchfeld said.
The robes date back to the "old world," where they were called "pondele." Though similar robes were worn by secular women through the mid-20th century, secular fashion became increasingly less formal, and hostess gowns became a thing of the past. But for haredi women, the shabbosrobe has never gone out of fashion.
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To avoid competition and ensure profitability, the retailers and manufacturers agreed in an August meeting to stave off sales until January 1, allowing them more time to sell at full price and avoid competition.
"We were all running on each other's throats," said Leah of Borough Park's Lingerie Shop.
In addition, the group agreed to increase the markup on the garments gradually to "secure a healthy margin." A 65% markup was initiated for the 2007 holiday season. Next Pessah, they plan to increase the markup again by a percentage still to be determined.
But US antitrust call into question the legality of such an agreement. According to the Sherman Act, the principle antitrust law, every contract, combination or conspiracy in restraint of trade is unlawful.
"That law has developed to mean unreasonable restraint of trade is unlawful," said Saul Morgenstern, chair of the antitrust group at New York's Kaye Scholer law firm. "The court will go through hoops to measure whether the agreement is good for competition or bad."
Price-fixing is usually considered "per se" unlawful, said Morgenstern. "If all sellers of a particular good get together and say, 'Competition is not helping us, we have to raise prices,' it looks pretty bad."
Jewish law allows price-setting by associations of manufacturers and suppliers, but says such price-fixing must be approved by a communal authority, according to an article on MyJewishLearning.com by Prof. Nahum Rakover...
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