High-end retailers are reporting renewed fervor for handbags, shoes, jewelry and other indulgences at full price. After snapping shut their designer wallets during the recession, luxury shoppers are making a big comeback. Gone are the drastic cost-cutting measures by high-end retailers, who are now reporting renewed fervor for handbags, shoes, jewelry and other indulgences at full price. U.S. retail sales overall are expected to rise about 3.5% this year, but the trend is even stronger at the high end, with a projected 7% jump over 2009. That's an encouraging sign for the overall economy because affluent shoppers wield outsized spending power. The richest 20% of households account for nearly 40% of total consumer spending in the U.S., said Michael Niemira, chief economist at the International Council of Shopping Centers. Their pent-up desire to spend money is being abetted by the stock market rally, a more stable jobs picture for those who are still employed, and expectations that the economy will continue to show steady, if slow, improvement. Excerpt from LA TIMES, Tuesday, December 14, 2010
Tuesday, December 14, 2010
Luxury shoppers are making a comeback
High-end retailers are reporting renewed fervor for handbags, shoes, jewelry and other indulgences at full price. After snapping shut their designer wallets during the recession, luxury shoppers are making a big comeback. Gone are the drastic cost-cutting measures by high-end retailers, who are now reporting renewed fervor for handbags, shoes, jewelry and other indulgences at full price. U.S. retail sales overall are expected to rise about 3.5% this year, but the trend is even stronger at the high end, with a projected 7% jump over 2009. That's an encouraging sign for the overall economy because affluent shoppers wield outsized spending power. The richest 20% of households account for nearly 40% of total consumer spending in the U.S., said Michael Niemira, chief economist at the International Council of Shopping Centers. Their pent-up desire to spend money is being abetted by the stock market rally, a more stable jobs picture for those who are still employed, and expectations that the economy will continue to show steady, if slow, improvement. Excerpt from LA TIMES, Tuesday, December 14, 2010
