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Someday, we'll all look back fondly on the days when it was possible to buy high-end goods at major markdowns because the economy was crashing down around our ears. "The get-it-cheap party for luxury consumers has ended," the CEO of a luxury research firm tells Bloomberg, and the paper digs up all sorts of examples to prove it.
Tiffany raised prices across the board recently. Neiman Marcus has found that some of its most expensive items are its best sellers. Prices on luxury goods other than jewelry increased an average of 11% in the past year, and people seem willing to pay extra: Sales went up 23%. Maybe the best indicator, though, is the rise and fall and rise again of the designer handbag. Before the recession, the average price was $2000; last year it was $1600, and this year it's a healthy $1800. Yay?
· ‘Get-It-Cheap Party’ for Luxury Goods Ends at Saks, Barneys [Bloomberg]