 |
Dayton Business Journal...
Wealthy boost
spending on luxury goods
by Laura Englehart
Wednesday, July 13, 2011
Luxury magazine the Rob Report’s publisher David Arnold said in a
recent CNBC article that some wealthy consumers were hesitant in the
past to showcase their fortune in an economic climate that left others
struggling financially. But, Arnold said, “That conspicuous consumption
feeling, or that concern, has really diminished over the last 18 months
or so.”
The perceived sentiment switch could account for marked increases in
luxury-item sales at area retail stores, with the rich expected to
spend close to $360 billion on luxury goods this year alone.
Note: Click “View Photo Gallery” above photo for slideshow of popular
luxury items.
Von Maur Inc. ‘s department store in the Dayton area has sold more
high-end, designer handbags this year compared with 2010, said
Advertising Manager Amy Davis.
Designer handbags, such as those by Coach and Burberry, sell for $250
to $300 on average, but the stores also have seen an increase in sales
of handbags priced at $700 or higher, Davis said.
The Davenport, Iowa-based company has 25 department stores in 10 states.
Heather Huth, James Free Jewelers ’ merchandising manager, said the
company’s two locations in the Dayton region have experienced “steadily
increasing” sales in the past six months, especially when it comes to
luxury jewelry brands.
Most notably, Huth said customers are purchasing high-end watches and
upgrading and remounting diamonds.
“To see a jump in remounts and watches tells me the men are lightening
up and buying the big watches and the women are getting the big ring to
counteract it,” Huth said.
The boost in luxury goods includes high-end retailers such as Tiffany
& Co. , which has a store in both Cincinnati and Columbus. The
luxury jeweler has seen sales increase 20 percent globally, including
19 percent in North America, during the first quarter of 2011.
The stocks of many of the luxury brands have climbed to new 52-week
highs, with others near those levels and even twice the low price of
the past year.
Shares of Nordstrom Inc. , which has a store in northern Cincinnati and
Easton Towne Center in Columbus, as well as Burberry Group and Saks
Incorporated , which has a store in Cincinnati and Columbus, have
posted big gains this year.
Even big luxury items are seeing an increase in sales, with BMW
expanding globally as its sales increase, and Mercedes-Benz also seeing
sales jump. The one standout in the luxury auto sector is Toyota Motor
Co. ‘s Lexus brand, which has seen double-digit declines in sales,
although those are driven mainly by lower production related to the
Japanese earthquake and tsunami.
Maserati, Lamborghini and Aston Martin also saw growth in sales,
according to CNBC.
Read it with links at Dayton Business Journal
|
