Luxury Retailers Brace for the Holidays

August 17, 2011 • Fashion Blog, Fashion for the Masses, Luxury

What is to become of luxury clothing, is what the industry is dying to know? With a major credit crisis in Europe and the US stock market floundering after the nation’s debt downgrade, luxury retailers are bracing themselves for a major loss in their devoted clientele.

To help ease the worry, yesterday Saks Inc. disclosed this month’s business trends as it reported quarterly results, noting that demand in recent weeks for expensive shoes and designer dresses has met expectations. Nevertheless, “severe market corrections or prolonged downturns have historically negatively affected us,” Saks CEO Steve Sadove warned investors. President of Ralph Lauren Roger Farah echoed this statement by saying that he was “concerned about macroeconomic uncertainty” as the holidays approach.

Even with all this looming, there is still an expectant holiday percent increase between 8 and 10 percent. “They may be taking pause, but I’m not sure people in the affluent segment have gotten their minds around the idea that we’re headed for a double-dip recession,” said Sherif Mityas, a partner in the retail practice at A.T. Kearney. Mityas continued if we truly experience a double-dip recession, then the luxury sector will be the first to feel the pain — when retail goes down luxury goes down even worse.”
The last thing anybody wants is a sad, poor Christmas…
– Taneisha Jordan

Source: NY Post

See the Top Ten Summer 2016 Trends for Women Over 40

Tags: , , , , ,

Leave a Reply