Paris Hilton weeps for all of us
by David Atkins (“thereisnospoon”)
The “plight of the poor wealthy” genre of journalism is back, this time disguised as an article about the plight of the poor luxury retailers who supposedly depend on them:
A week ago, Michael Heller was ready to drop thousands of dollars on a Jaeger-LeCoultre watch that he’d been coveting. But the recent stock market turmoil made him rethink the splurge.
“Instead of making an impulse purchase on a $3,000 or $4,000 item, we’re going to wait six months,” the 40-year-old management consultant said while shopping in Beverly Hills, Calif. If things don’t rebound quickly, he added, further belt-tightening could occur “very soon.”
That kind of thinking has spooked high-end retailers, who have watched nervously this month as stocks fluctuated wildly.
Many fear a repeat of 2008, when the market crash led to deep cuts in spending among the wealthy and forced retailers to offer discounts as high as 70 percent off fresh designer merchandise. Luxury was the worst-hit retail sector during the recession.
In Beverly Hills this week, Pol’ Atteu said the stock market turbulence was especially disappointing because it came just as things were starting to look up at his namesake haute couture women’s boutique.
“We were all pumped, and now it’s like — boom. Another hit,” he said. “It’s hard to recover, and emotionally it’s draining.”
The luxury sector has been a consistent bright spot in the retail industry this year, posting robust sales month after month as wealthy shoppers spent freely on designer handbags, shoes and jewelry. Luxury brands have been selling out of products even as they’ve raised prices. Chanel, for instance, has seen its $4,300 jumbo classic flap bag fly off shelves despite a $600 price increase in June.
The poor dears. I’m sure things will be better for everyone once the Super Committee throws the social security funds of the