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Luxury Retail Seen Remaining Resilient

Trio of factors underlie sector’s ongoing strength, report finds.

Published

1 month ago

October 25, 2023

INSTORE Staff

PHOTOGRAPHY: ValuaVitaly/iStock.com

A new report outlines three reasons luxury retailers should be able to maintain their momentum despite today’s highly uncertain economic climate.

“The luxury sector faced major shifts over recent years from rapid inflation to slowing economic growth, continued COVID lockdowns in China, and the outbreak of war in Ukraine in 2022,” notes the report, which was prepared by consulting firm Bain & Co. and Edited, an AI-driven merchandising experience platform. “Despite these headwinds, sales have never been stronger in the luxury market.”

Here’s why, according to the report:

Overall price distribution in the luxury market has expanded due to assortments tilting toward more luxury items since pre-pandemic times.
Brands have reduced visible discounts by 5 percent, on average, across both men’s and women’s ready-to-wear and accessory lineups.
Luxury brand leaders’ assortments were able to intercept fast-growing categories since the pandemic, compared to normal brands.

Click here for more from the study, titled “Three Reasons Luxury Should Remain Resilient.”

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When There’s No Succession Plan, Call Wilkerson

Bob Wesley, owner of Robert C. Wesley Jewelers in Scottsdale, Ariz., was a third-generation jeweler. When it was time to enjoy life on the other side of the counter, he weighed his options. His lease was nearing renewal time and with no succession plan, he decided it was time to call Wilkerson. There was plenty of inventory to sell and at first, says Wesley, he thought he might try to manage a sale himself. But he’s glad he didn’t. “There’s no way I could have done this as well as Wilkerson,” he says. Wilkerson took responsibility for the entire event, with every detail — from advertising to accounting — done, dusted and managed by the Wilkerson team. “It’s the complete package,” he says of the Wilkerson method of helping jewelers to easily go on to the next phase of their lives. “There’s no way any retailer can duplicate what they’ve done.”