Consumer spending at luxury retailers is expected to cool in August, as the confidence of top earners dropped slightly for the second straight month after eight months of growth, according to Kurt Salmon’s Luxury Spending Trajectory.
At the same time, luxury consumers also said they have become more budget conscious, a sentiment reflected in June same-store sales growth figures, which slipped from a May high. Still, June comps are higher than they were during most of 2010 and 2011.
The economic uncertainty we’re experiencing right now is giving the luxury consumer pause, and she’ll likely be more cautious in her spending until she sees more stability in the economy” said Greg Ellis, retail and luxury strategist. “With the nation’s highest earners moderating their spending, luxury retailers will need to continue to offer extraordinary experiences and exceptional products to win share in the market.”
26 July 2011