Update (with pics):

Yesterday, Costco opened its first store on the island of Manhattan, located on 116th Street off the FDR.

The store, featuring more than 105,000 square feet of selling floor, offers those familiar with Costco typical amenities, such as: a selection of more than 3,500 different products, a pharmacy, a doctor-staffed optical department, a hearing aid area, a photo center and a food court.

However, upon reading about this grand opening, I found out that a couple of not-so typical offerings were also spotted:

The Chanel classic flap handbag ($1,999.99) and the Louis Vuitton “Speedy 30” mini-duffel ($589.99).

I’ve been shopping at Costco dating back to when I was a little tyke. Back in those days it wasn’t even called “Costco,” the name of the company was “Price Club.” And in all those years of walking through the various aisles of its numerous stores all over the country I’ve never seen high-end couture items being sold. This got me thinking…why? Surely these shoppers in NYC aren’t being offered counterfeit merchandise!

I’ve acquired the answer. Obviously, Costco is not doing anything illegal so brazenly. They are simply participating in what’s called the “Gray Market.” The Gray Market is comprised of items that, while authentic, are sold outside the normal chain of distribution rather than being obtained from the manufacturer directly. Thus, since it’s not a direct relationship (aka “black & white”), it’s called Gray Market. Gray market exists primarily because of production overrun of goods, aka overstock from authorized resellers.

Costco is not considered an authorized reseller of LV or Chanel, unlike pre-approved distributors such as Neiman or Saks, so it must obtain said items from another reseller. Also, Costco doesn’t have a business relationship with the suppliers, and as a matter of fact I’d assume that the couture companies would frown upon their merchandise being sold by a “wholesale warehouse.” But they cannot control such a flow of their products since Costco is doing nothing illegal, simply buying goods in bulk and reselling them for a discounted retail price, as they do with all the products they sell. Simple macroeconomics.

So there ya go kiddies – your Econ 101 lesson for the day. See? I’m fun AND educational!

And fear not, Manhattan Costco shoppers! The Chanel bag you bought yesterday is indeed real. Too bad it’s also ugly.

A.P.C.’s surplus store is hosting an overstock sale Friday through Sunday, 10/30-11/1, featuring 80% off past seasons’ stock and samples.

Saks Fifth Ave Friends & Family event starts online on 10/13/09, and starts in stores on 10/15/09.

For saks.com orders, use Code FRIENDS2 at checkout.

For in-store purchases, click here to print your invitation.

Sigh…I miss NYC…

If you were one of the models who stripped down to her skivvies in the Rose Bar last Thursday night, you might have been caught on film. A source told Page Six, “the air conditioning was on the fritz” at the swanky lounge in the Gramercy Park Hotel, and the usual revelers began losing their cocktail dresses. “Some ended up fully topless, while others were only in lingerie,” said our source, who added that documentary filmmaker Douglas Keeve shot some video and is putting the footage up on YouTube today.

My wallet is going to be empty really soon…

Summer’s not over yet, but our Blowout Sale almost is. Starting Friday, July 10th, shop Opening Ceremony New York, LA, and Online for even deeper discounts of our limited collections. Enjoy 50-70% off designers like Acne, Alexander Herchcovitch, Band of Outsiders, Fifth Avenue Shoe Repair, Final Home, Hussein Chalayan, N. Hoolywood, Nom de Guerre, Patrik Ervell, Peter Pilotto, Rachel Comey, Rodarte, Stephan Schneider, Toga, Tsumori Chisato, United Bamboo, Whyred, Zucca, Opening Ceremony, and many more.

I just looked and their entire selection of Band of Outsiders is on sale.

My favorite store just announced an additional markdown.   There is a growing lightness in my wallet already!