WSJ Article: Affordable Luxury Stores Feel Economy's Pinch

  1. The Wall Street Journal (WSJ) has a lot of great articles about the fashion industry. Today, they had an article talking about how stores that cater to the affordable luxury market (sometimes called aspirational buyers - upper middle class) are suffering this year. Stores like Nordstrom’s, Ralph Lauren, Coach, and Saks have all suffered slowing sales over last year. The slowdown is expected to adversely affect holiday sales this year. The article cites the reason that buyers at these stores are starting to feel pinched by the economic troubles in the U.S.

    In contrast the highest end luxury market is expected to remain robust because the wealthiest individuals are not likely to be very affected by economic woes. Specifically, the brands that have tried to distance themselves from the "masses" such as Hermes, Loro Piana, and Harry Winston, are likely to do well this year.

    I was curious whether people at tPF plan to cut back their spending this year at the affordable luxury stores and whether people whoshop at the highest end luxury market are planning to continue to spend. That is, are we following the trend that analysts expect? Any thoughts?
  2. I know I still plan on shopping! ;)
  3. I shop mainly at the affordable luxury stores, and I sure haven't been cutting back... at all!
  4. I'm mainly at affordable luxury (I'm guessing that is where NM, Eluxury, LV would fall)....and no stopping my spending! Despite the bad economic times, hubby is making more than ever (no clue why LOL)!
  5. We haven't planned to cut back either. Everytime I've been at Nordstrom, the place is really crowded. However, it could be that a lot of people are browsing, but not shopping. I'm actually hoping that the slower retail sales will result in discounts that we can take advantage of in the near future.
  6. JMO - lots of the shoppers were using their homes as an ATM, Now home values are down, they don't have the equity to pull out anymore.
    We aren't effected by any troubles in any market, don't care what the $'s valued at.
  7. the staggering economy just tempts me more ~ more sales!
  8. as someone who is heavily invested in real estate...i am curbing my spending.

    it is psychological, when your value is sky feel like spending, as it dips spend less

    we did the same thing in the stock market years ago, spent like crazy when the stocks were high...came to a halt as they faltered

    it is a cycle, not giving up the high ticket items...just letting up on the trigger finger for a while
  9. Sadly, my spending is WAY down. DH quit a mid six figure job a year ago (his whole industry was going away any way) and decided to start his own business, so we're spending our savings just to live on right now.