While those in the middle and lower rungs of the economic ladder have had to continue economizing with the high price of fuel and other commodities, the nation's wealthiest consumers, while not wholly immune, have pressed on with their spending.
As Ryan Mathews, founder and chief executive of Black Monk Consulting and RetailWire BrainTrust member, pointed out in an earlier discussion on this site, "The rich are different from the rest of us -- they have money. And, people with money often go shopping. Retailers catering to higher end clients will probably see a contraction in aspirational shopping by the almost (or hoping to be) rich, but the real rich should keep on spending."
Saks Fifth Avenue was among the luxury chains that saw sales swoon when its clientele cut back during the Great Recession. The chain ran deep discounts and broadened its product selection to offer lower, entry-level merchandise prices to attract aspirational shoppers who defected in the greatest numbers when the economy went south.
Now that the good times are back for many of its shoppers, Saks saw comparable sales increase 10.2 percent in the most recent quarter, the company is adjusting its merchandise selection from its "good, better, best" mix, as The Wall Street Journal described it, to include more items in the "best" category. Saks said it expected comparable store inventory levels to "be up in in the mid-single digit range throughout the year."
Stephen Sadove, chairman and chief executive officer of Saks Incorporated, said in a statement, "With the rebound in the financial markets, the luxury sector has rebounded as well. We are increasingly optimistic about the future and are pleased that our customers have responded to our differentiated merchandising, service, and marketing initiatives."