Both ends of the shopping spectrum — discounters and luxury stores — saw better than expected sales results in June.
June sales for luxury chains clocked in at 6 percent growth while discount chains reported 7 percent growth, the San Francisco Chronicle reported.
As this article explains, there are two types of retailers that are succeeding right now: the ones that cater to the really rich and the ones that cater to the working class. When the recession started, the upper classes still had money, although they might have spent a little less. When the economy bounces back, they just went back to their former habits.
Also during the recession, the poor and middle classes flocked to the discounters. It’s during these times when dollar stores broaden their assortment and see higher sales. Mid-range retailers will need fantastic customer service or some kind of differentiator to attract middle-income shoppers.
Back-to-school shopping will be the next driver for consumer spending, according to the article.
“They have to have a reason to spend,” said Ken Perkins, president of a retail research firm. “If they are given a reason to spend, they do come out and buy.”
Source: San Francisco Chronicle, July 2012