What: For the longest time, luxury’s been “out.” Stores like Saks and Abercrombie and Fitch have been forced to lower prices, while discounters like Wal-Mart and Target have done pretty well serving their bargain hunting customer base. However, times are changing, and a recent study is now showing that affluent consumer spending is making a comeback.
What They Say:
Confidence among affluent consumers showed marked improvement in the fourth quarter of 2009, with the group opening up their wallets to spend on luxury clothing, travel and spa services, according to Unity Marketing’s latest luxury tracking study.
What We Say: We’re glad retailers can look forward to a happier 2010 than 2009, but we’re not looking forward to the inflation that may result. High-end retailers have overcharged us in the past, and as soon as they can again, they will. Hopefully shoppers will have learned a lesson or two from the Recession and won’t get caught up too much in careless spending again.