Interesting Facts abut Luxury Retailers

Spending by middle-market customers are expected to decline in this holiday shopping season because of higher gas prices and weak housing market. This has hurt midtier retailers like Target, Limited Brands, and Zale according to WSJ. However, spending by the ultra-rich would hold up as they are less affected by these factors. The weak dollar has also boosted spending by foreign tourists, benefiting luxury retailers who have flagship stores in NYC or Beverly Hills. Saks' Fifth Avenue store for example, generates about 20% of the company's $2.9 billion annual sales. Meanwhile, Tiffany & Co., which derives 20% of its total sales of engagement jewelry, also generates 10% of its annual sales from its flagship Fifth Avenue store.