Luxury retail has become a victim of the current economic turmoil. The Wall Street Journal reports this morning that even those luxury brands that have recently branched out with more affordable lines are taking a hit as consumers simply don’t have as much disposable income as they used to–and simply aren’t disposed to spending that which they might have.
In fact, luxury giant Louis Vuitton raised by 5 percent yesterday the price of its handbags in the U.S. Jewelry gem Tiffany’s, which has raised its prices in the last few years because of the last economic downturn, saw sales slide 2 percent in its U.S. stores in November and December.
And Coach CEO Lew Frankfort perhaps put it best. Noting the recent holiday shopping season, according to the Journal, Mr. Frankfort said, "Some of our consumers traded down to lower-priced items."