18 July 2016
It wasn’t long ago that the global luxury retail market was flying high as the world’s wealthy thrived. Now, however, luxury retail may be losing some of its shine. Threats to global stability—including terrorism, Brexit and China’s economic slowdown—are making many high-end spenders uneasy. Such uncertainty spells trouble for luxury firms because it scares off tourists, and tourists are some of the best luxury customers.
“A few years ago, tourists would come buy empty luggage and fill it up and send it back home,” Arnold Aronson, Kurt Salmon retail strategist, told USA Today. But as tourism drops and luxury faces competition from discounters and online sellers, the luxury retail market may be in trouble.