The days of the frivolous shopper spending obscene amounts of money at luxury stores like Saks, Neiman Marcus, Nordstrom's, and Bergdorf's has been put "on hold". The mind set and spending habits of the aspirational as well as the affluent consumer are in transition. A tough retail business climate is evident as negative 3^rd quarter earnings are reported at luxury stores, mid tier department stores; Macys & Dillards as well as specialty retailers; J.Crew, Chico's, Talbot's, Ann Taylor stores alike.

Enough doom & gloom….as we all know, you can not keep a good shopper down and feelings of guilt are short lived as the dedicated consumer just finds a different focus to embrace their self indulgences. The "frivolous factor" has been modified and shopping strategies have been adjusted accordingly.

There is a obvious shift of buying habits, but the following remain high on the customer's got to have it list…..  

v      As the economy crumbles, it's a documented fact that cosmetic sales rise. Reportedly sales are up 40% over the last few months as the affordable luxury quotient focuses on lipsticks !!

v      Take a pass on trendy and indulge in timeless pieces like a great pair of leather or suede boots that can make or break an outfit

v      Splurge on the "unique piece"..newness that the customer doesn't already own…the ruffled blouse, the sweater coat, metallic brocade jacket or bright cashmere

v      Bold & obvious statement accessories like chunky jewelry, a great belt, the clutch handbag and definitely something metallic

v      "Multi purpose" dressing, those versatile items that go from daytime to evening

v      Seasonless fabrics like matt jersey and silks that can be layered if necessary and worn nearly all year

And then there is the price / value quotient …..this is most obvious in the secondary lines being offered to consumers from well known or perceived luxury designers of apparel and accessories;

v      Vera Wang ( Very Vera) at Kohls

v      Anya Hindmarch handbags & Sigerson Morrison shoes at Target…the latest in limited edition designer offerings

v      Isaac Mizrahi (no longer at Target) now head of design for Liz Claiborne

Most importantly, let's not lose sight, that when the going gets tough, sharp markdowns are a stimulus but the customer is seduced by assortments that are exciting & enticing.

But even for the best positioned store or brand the retail pie is getting smaller and at best, most will approach 4^th quarter with reduced expectations.  

I'll keep you updated as the peak holiday shopping season kicks off in the next 2 weeks….this is going to be quite a roller coaster ride!

Cheryl