Consumer spending at luxury retailers is expected to flatten heading into October, as high-end consumer confidence slipped for the fourth straight month and intent to spend for three, according to Kurt Salmon’s Luxury Spending Trajectory.
“Luxury consumers remain cautious as they wait to see how the economy will play out,” said Greg Ellis, retail and luxury strategist. “Though still much more bullish than at the depths of the recession, consumers have moderated their expectations compared to earlier this year. We would expect low-single-digit growth in the luxury market in the coming months. Now, everyone is crossing their fingers for more positive economic signs before the holiday season.”
Historically, luxury spending is more vulnerable to stock market fluctuations. During the past two recessions, the luxury segment took a considerably heavier beating than did retailers targeting lower-income consumers.
30 September 2011