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Luxury Retail Fights the Downturn

Those hoping to be or feel rich are stepping back from shopping at luxury stores.

By Debra Hazel | Updated on July 13, 2008

If the saying is true that the rich are always with us, those hoping to be or feel rich are stepping back from shopping at luxury stores right now.

The slowdown in sales seen for some time at mid-priced chains is affecting higher-end retailers as well. Though Tiffany reported sales increases, the gains are from overseas stores and its New York City flagship. In its most recent quarter, Neiman-Marcus reported a 2.5% comp-sales decline.

“For the first time, we’re seeing a slight softening in the luxury market,” said Steven Greenberg, a Hewlett, NY-based leasing consultant who represents a number of luxury chains. “A lot of aspirational people are good luxury shoppers – for $400, you can buy a small handbag at Louis Vuitton. Those are the customers we’re seeing affected right now.”

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