The slash and burn spending cuts that have been used to balance the budget will affect the low-income communities at first, then will gradually creep into the middle class arena, what is left of the middle class.
According to Moody’s the top 20% of the earners in the US account for 60% of all spending. MasterCard Advisors SpendingPulse, a research service states that the luxury category has posted 10 consecutive months of sales increase compared to last year. July alone had an 11.6 percentage increase.
Much of this spending on luxury goods is attributed to the Dow Jones being up by about 80 percentage from its low in March 2009.
Even Marked Up, Luxury Goods Fly Off Shelves
By STEPHANIE CLIFFORD
Published: August 3, 2011
Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars last month in the United States than it had in any July in five years.
Even with the economy in a funk and many Americans pulling back on spending, the rich are again buying designer clothing, luxury cars and about anything that catches their fancy. Luxury goods stores, which fared much worse than other retailers in the recession, are more than recovering — they are zooming. Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price.
“If a designer shoe goes up from $800 to $860, who notices?” said Arnold Aronson, managing director of retail strategies at the consulting firm Kurt Salmon, and the former chairman and chief executive of Saks.
The rich do not spend quite as they did in the free-wheeling period before the recession, but they are closer to that level.
Read the full article at The New York Times in Business Day.
Christian Louboutin Bianca Patent Platform Pump
Neiman Marcus – $775 currently sold out
The shiny patent leather sheen gleams on this quintessential platform pump.
- Patent leather
- Low-dipped vamp for leg-lengthening effect
- Almond toe
- Leather lining; padded leather insole
- 5″ covered heel with 1″ platform
- Signature red sole
- “Bianca” is made in Italy
About Christian Louboutin:
French designer Christian Louboutin introduced his namesake collection in 1991, and his powerfully feminine shoes soon became must-haves for stylish women everywhere.