Softening same-store sales growth may be in store for luxury retailers, as confidence among the nation’s top earners slipped for the third straight month after eight months of growth, according to Kurt Salmon’s Luxury Spending Trajectory.
Twenty-nine percent of high-income consumers said they were confident or very confident in the economy this month, down from 43% in February 2011. The last time confidence dipped this low, in September 2010, it—and sales—quickly rose again.
“The luxury consumer’s confidence is linked to stock market performance, so while recent gyrations have shaken confidence, once the dust has settled, confidence and spending should turn around,” said luxury strategist Greg Ellis.
31 August 2011