Don’t worry, keep spending. This certainly seems to be the message communicated recently, based on encouraging jumps in the luxury spending department.
Yes, it seems that luxury shopping and spending are indeed making a comeback, with affluent buyers regaining confidence. Another issue that has kept the wealthy from spending has been the fear of ‘conspicuous consumption’, with the economy in shambles it has been rather frowned upon to be seen spending ‘obscene’ amounts of money on luxury items.
Now with the economy showing gradual signs of improvement, it is becoming increasingly acceptable for the wealthy to splurge on luxury items, exotic cars and more. This is very exciting news, as it indicates hope for the future of all economic brackets. It is even more exciting coming on the heels of the release of ‘Sex and the City 2’, which highlights the swanky side of living in New York City.
So are the rich coming back? It is definitely seductive to read about the big spenders of the world, and such extravagant tales have been waning in recent years. Trends are indicated in markets such as high-end food, luxury real estate, exotic car sales and luxury items. Ferrari, Maserati and Rolls-Royce have all reported increases in recent U.S. sales.
For example, Whole Foods has reported a solid quarter, one of the best they have enjoyed in several years, according to CEO John Mackey. Their stock prices have also doubled.
Luxury real estate investment is also making a comeback, with homes selling for upwards of $2 million higher than in previous years. Investing in luxury property is affordable to those who have the capacity to hold onto it until the time is right to sell, if they desire. For those who are not quite as confident about recent market improvements, there is always the option of a luxury property rental to indulge without committing. The same goes for luxury car rentals, with exotic car sales also experiencing an increase.
Luxury item sales are also on the move, with Tiffany reporting an impressive first quarter and global sales up 22 percent. After seven straight quarters of declining sales, Saks has also reported a rise in first-quarter sales, up 6.1 percent to total $667 million. Nordstrom has also reported an increase of 12 percent, with net sales coming in at $1.99 billion.
So while it still may be a few short years before America is willing to spend like it is 2006, the health of the economy does seem to be improving which is a sign of hope and relief for income brackets across the board!
Post by Imagine Lifestyles Luxury Rentals