LuxuryRetail

The Rich Will Rescue Christmas

Filed under: Apparel

It looks like luxury retail is getting ready for a comeback. Shoppers in enviable tax brackets are doing a better job of prying their wallets open, at least if you can believe their stock prices. Tiffany, Saks and Nordstrom all showed signs of progress heading into Black Friday, meaning that investors were willing to bet on the wealthy.

Dan Greenhaus, chief economic strategist at Miller Tabak, explained to USA Today, "We're resting our (upbeat outlook) on the upper-income consumer, who seems to be holding up pretty well." This group, he continued, "is where the vast majority of spending in this country is done."

Research firm Penn Schoen Berland weighed in with agreement: "Well-to-do Americans are feeling much less of a crunch." Households with incomes of greater than $70,000 a year, the firm found, planned to amp up their holiday spending by 27 percent this year. Those with incomes below $40,000 are cutting their holiday joy by 14 percent.

While the bargain hunters turn to the discount retailers, which are expected to do well this year, look for the higher-income consumers to spend more at places like Williams-Sonoma and other mid-range to upscale retail establishments.

So, with deeper pockets starting to open this year, it looks like the wealthy will turn last year's holiday bust around. A good holiday season for Saks shows that those with the bucks are starting to open up, and recoveries start at the top.

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Tags: luxury retail, luxury retailers, LuxuryRetail, LuxuryRetailers, nordstrom, Nordstroms, recession, RecessionAntidote, recovery, retail, retail sales, retailers, RetailSales, saks, Saks Fifth Avenue, SaksFifthAvenue, tiffany, TiffanyAndCo, tiffanys

Luxury Retailers Slash Prices to 70%

by Tracy Chait (RSS feed) —

Filed under: Apparel

You almost expect a Prada-clad shopgirl to announce a blue light special in aisle 8. Except you're at Bergdorf Goodman, and they don't do that there. And yet, over the weekend Madison Avenue Spy reported that Bergdorf would slash prices to 70% off, likely to compete with Saks who'd gone that far the week before.

Those on Barney's email list learned this morning that the store would go to 60% off retail. And we're only a week into December.

According to the NY Times, the recent sales have induced a bit of a frenzy in Manhattan, where lizard-skin handbags are tossed together into bargain-bin like displays a la Wal-Mart...aisle 8.

Gallery: Luxury at a Discount