Recession? What recession? For the retailers catering to the rich, there is no such thing.
According to a recent article in the Wall Street Journal, the biggest luxury-goods retailers are tackling 2012 with even more confidence, thanks to a very successful 2011.
Research cited in the article suggests major luxury retailers are reporting sales growth around 20 percent for the last quarter of 2011 with no signs of the trend changing.
“At a time when many consumer goods segments are suffering, luxury is rich with promise,” the Journal reported.
The key to this retail gold mine? Foreign shoppers. Folks from China, Brazil and Indonesia are flocking to the United States and Europe to shop, shop, shop.
This is a great boost for the U.S. because these foreign visitors shop, stay in hotels, rent cars and eat out — all boosting the economy. As more retailers open stores abroad, this will affect the U.S. While some people will still travel to America to shop, others will stay at the new stores closer to their homes.
Many Americans, on the other hand, prefer quantity over quality and aren’t spending as much on luxury goods.
Source: Wall Street Journal, February 2012