Luxury Retailers Take a Hit as Economy Slows

With many families and individuals sitting down to take a second look at their finances, it is inevitable that there will be cuts in nearly everyone's budget soon and in 2009 especially. It doesn't take a degree in economics or finance to predict that the first things cut from the budget are not food, shelter, or clothing but the type of clothing may certainly come into question. Spending $80 on a pair of jeans may have been a fad of 2008 and we may not see that fad emerge again for a few years. It didn't take long in early 2008 when economic issues and data really began to clarify where things were headed in the coming months of 2008 for shares is stores like Wal-Mart and Costco to begin to gradually increase while other companies' shares fell beyond recognition. Wholesalers and bargain hunter discounters have soared in the economic downturn and will not stop soaring. As humans, we can't wipe things like "food" and "tissues" off of our monthly finances and we will probably never have to. That lends some security to supermarkets like Market Basket which appeals to the bargain hunter in everyone with lower prices and just-as-good customer service and atmosphere as you'll find at any of the other food markets countrywide.

However, there's no way that Polo is going to release a new line of clothing that appeals to the budget of the recessed lower-middle class consumer. That's just not their audience and they wouldn't be Polo if they changed that drastically. Moreover, the dance music and cologne is not going to stop pouring out of Abercrombie & Fitch as you walk up to it's welcoming yet cool summer house appearance, having smelled it from all way down by the food court at the other end of the mall where stores like Sears and Marshalls continue to thrive and cater to the increasing number of budget-conscious consumers that will even more so fill its aisles as the downturn sees no approaching light at the end of the retailing tunnel.