1. Mediaite
  2. Gossip Cop
  3. Geekosystem
  4. Styleite
  5. SportsGrid
  6. The Mary Sue
  7. The Jane Dough
  8. The Braiser
Advertisement

The Economy Today: Luxury Goods Are Flying Off Shelves While Discount Stores Hold Fire Sales

» 50 comments

In the midst of all this depressing talk about the economy, there is, at least, a sliver of hope. And that sliver is plastered from top to bottom with Louis Vuitton logos. The very, very rich are evidently still very, very rich and, as the result, sales of luxury goods are going strong, with some retailers even marking up pricey items.

Fortunately, The New York Times keeps us up to date with what The Rich are up to these days. Writes Stephanie Clifford:

The rich do not spend quite as they did in the free-wheeling period before the recession, but they are closer to that level.

The luxury category has posted 10 consecutive months of sales increases compared with the year earlier, even as overall consumer spending on categories like furniture and electronics has been tepid, according to the research service MasterCard Advisors SpendingPulse. In July, the luxury segment had an 11.6 percent increase, the biggest monthly gain in more than a year.

What changed? Mostly, the stock market, retailers and analysts said, as well as a good bit of shopping psychology.

An example of the sort of shopping psychology to which they refer: One woman said she is willing to pay a high price tag for a “classic” items, but that she draws the line at purchasing anything flashy, conspicuous or trendy. A classic Burberry coat? Sure. Fluorescent orange Gucci thong that plays Gucci Mane when you sit down? Pass!

Contrast the luxury market with stores like Walmart that cater to the average American, however, and you’ll see a striking difference. Some stores, for example, have had to divide multi-packs for customers unable to spend money on several products at once.

Suffice to say that there’s something of a disconnect going on, with those with a lot of money — while not completely immune from the impact of the recession — definitely not feeling the pinch and, perhaps more importantly, the full force of the country’s high unemployment rate. The spending habits chronicled in the NYT article just seem so at odds with the reality that the government and opinion news media have focused so much time and energy discussing economic woes and the state of the stock market.

Just take a look at last night’s The Factor, for instance. Host Bill O’Reilly dedicated a good chunk of his show to the economy.

h/t NYT

Follow us on Twitter.

Sign up for Mediaite's daily newsletter.

Email Twitter Facebook Digg Reddit Stumble Upon Yahoo Buzz LinkedIn Tumblr Delicious
  • Anonymous

    I guess that’s where all the tax breaks goes. 

  • Michelle

    Mediaite, doing their part to keep the class war alive and well. 

    Alex, I’m guessing the employees at these “luxury” stores are pretty happy that business is good?

  • Dflojak

    yeah, to the business selling luxury goods, to the employees of that busines and the owners, to the grocery store and car dealer and clothing store that sells the employess of that luxury goods retailer things they need everyday that they pay for with their paychecks, to the people that own the grocery store and car dealer and their employees who continue to have jobs and spend money. See that’s how it works. Not a welfare check from the government or unemployment check that “stimulates the economy”, because that money is yours and mine,bozo the government doesn’t shit it..

  • Anonymous

    In other words, what I’ve said. Why do you find the need to repeat what I’ve already summarized? 

  • Michelle

    Debbie Wasserman-Schultz: “We’ve really begun to turn the economy around”

  • Anonymous

    I’m sure they would if they worked on commission.  I’m sure they would if a higher volume of sales meant higher income for them.  However, even luxury retailers rarely pay their retail staff much more than minimum wage.

  • Anonymous

    proof you have no clue about luxury retailers…

  • Dflojak

    sorry, thought you were being facetious about the rich getting richer like most dems do, did I boo boo. Sorry.

  • Dflojak

    I used to work for Cartier in the 80′s. Made about 100 K as sales rep. And your experience?

  • http://pulse.yahoo.com/_NCNP5R6ICID7RUPE4MWXC2UQMQ Huian Huian

    ==  w  w  w  (  y   a   h   c   c )   u  s   ===
     A new season,
    In our website can be found
    in many cheap thing,
    fashion for your choice.
    welcome==  w  w  w  (  y   a   h   c   c )   u  s   ===Dedicated service, the new style,
    The new update, a large hot==  w  w  w  (  y   a   h   c   c )   u  s   =====  w  w  w  (  y   a   h   c   c )   u  s   ===

  • Anonymous

    Why can’t Bob Cratchit be so happy with the one lump of coal Scrooge so generously supplied?

  • Michelle

    Yes, they make a low hourly wage because they make commission.  Duh!

  • Anonymous

    shogan will say you must have worked 500+ hours a week! lol

  • Anonymous

    Worked at Prada, made $10 an hour.

  • Anonymous

    cleaning toilets?

  • qwerty

    .anyone noticed the stock market collapse after the republicans and tbaggers got everything they wanted in this stupid debt deal?

  • Anonymous

    I know that was meant as an insult, but I’m not sure how it can be taken as one. 

  • Anonymous

    Its a deal hated by everyone.

  • realheadline

    Spread the wealth around right? Oh, didn’t get yours? Most of this is stolen taxpayer money, stolen by progressives, now being spent by the neuveau riche on themselves. While the rest of us go deeper in debt. Too bad they don’t let useful idiots liberals have any of the cash Too bad.

  • Michelle

    You mean the deal Obama agreed to?

  • Michelle

    Maybe you weren’t good at your job.  I did pretty good at Nordstrom.

  • Anonymous

    I’m not sure how assumptions regarding my value got into this conversation. 

    Oh wait.  I forgot.  This is Mediaite.

  • Anonymous

    shogan maybe its because you claim since you were paid $10 bucks an hour that luxury retailers only pay minimum wage. those of us that purchase such items know you are full of shit…

  • Anonymous

    “shogan maybe its because you claim since you were paid $10 bucks an hour
    that luxury retailers only pay minimum wage. those of us that purchase
    such items know you are full of shit… ”

    I wasn’t aware that buying items at a luxury retail store made you an expert on the wage policies of every luxury store. 

  • Anonymous

    “shogan maybe its because you claim since you were paid $10 bucks an hour
    that luxury retailers only pay minimum wage. those of us that purchase
    such items know you are full of shit… ”

    I wasn’t aware that buying items at a luxury retail store made you an expert on the wage policies of every luxury store. 

  • Anonymous

    shogan you just keep proving your are full of it. yes i know how they get paid. you develop relationships with these sales people and they call you when something they know you would like comes in. you must have worked at the prada outlet store…

  • JP

    If it were really trickling down as you claim, then there wouldn’t be such anemia in the rest of the economy.  The point is that such imbalance shows that the supposed trickle is clogged.

  • JP

    If it were really trickling down as you claim, then there wouldn’t be such anemia in the rest of the economy.  The point is that such imbalance shows that the supposed trickle is clogged.

  • Anonymous

    Truthful reporting hurts…eh?

  • Anonymous

    It was either accept this horrible deal, or let you crazies blow-up the US & World economies.

  • Anonymous

    Three cheers for slavery and indentured servitude.

  • Tedderman

    Oh, you’re right, he should have just let the U.S. default on it’s debts like the tea-party wanted.  He had no choice and now we’re making the same mistake made by Roosevelt in 1937, when he listened to republicans and reigned in spending.  It sent the U.S. economy back into depression again and it did not recover until well into WWII. 

  • Tedderman

    My neice works for one of the high end “wedding dress” shops shown on TV and they don’t even give their employees discounts and their commissions are crap.

  • Anonymous

    “shogan you just keep proving your are full of it. yes i know how they
    get paid. you develop relationships with these sales people and they
    call you when something they know you would like comes in. you must have
    worked at the prada outlet store…”

    Just because my personal experience in luxury retail does not match your personal experience as a buyer of luxury goods does not make me ‘full of it’.

    I develop relationships with people all the time, that doesn’t mean I know how much they get paid.  Do you ask them?

  • Independent

    I’m willing to bet that $100K that, if true, yours was a pretty atypical experience. My ex used to work for Henri Bendel, another luxury goods store practically across the street on Fifth Avenue, and never cracked $30k. The vast majority of these employees are not well paid — but they’re required to maintain a wardrobe that suggests they are.

  • http://impossibledreamsmedia.com Chris Jones

    The solution is for the less wealthy to buy high quality replica luxury goods from China.

  • Dflojak

    NEWSFLASH; President Obama announced today his counter proposal to save the world from the blow up of the world economies should be ready to be introduced shortly after Christmas. He’s sorry for the delay, but you know, he doesn’t like conflict.

  • Dflojak

    Obviously, one of us brought more to the table! Not that there’s anything wrong with that.

  • Dflojak

    I disagree, but it’s what you negotiate and what you bring to the company. I sold over 12 million of their merchandise, and didn’t get commission. actually, I always felt i deserved more, so I left and started m own company. America, ya gotta love it.

  • Anonymous

    Republican Party leaders loves lemmings like you. It’s amazing how some middle class people can’t see the huge disparity change that’s occurred since 1980′s.

  • John

    Libs are so hypocritical. To keep on the bandwagon of your nanny state there must a provider, wallah the evil rich folks. No evil rich folks no nanny state. Their mantra or goal is for everyone to be poor. Nice solution. Lmao

  • Teanationiscancer

    Thanks tea party!!! Now finish the job you came for , come nov finish cutting the throat of this weak economy. Grest job “patriots”…

  • http://games-survival.com Justplaythegame

    You have a choice in America…

    1. Be a welfare democrat asking for even more entitlements and use the system for no work entitlements paid by those that do work and companies that do invest within the borders..Do not even attempt to restructure Social Security and Medicare to save it for our future generations. Allow graft, corruption loopholes remain as half the debt these programs demand.

    2. You can be a Rich American, save your money till someone that can lead growth within our borders comes into office with less regulation and backs it with Capitalism over Socialism thinking.

    3. Be a middle class American tired of the TAX your expected to pay and continue to rise to support a dollar with no substance other than your back in taxes, entitlements you may never use while government expands into further programs you had no interest in including TSA Homeland security etc. that invades your private lives, all these burdens you accept and continue to call yourself a Democrat.

    4. Vote for real change of smaller government, less taxation, less programs, less invasion of privacy, less regulations into your every day lives…That’s the Tea Party.. What’s not to like? How dare anyone call them revolutionaries when We The People voted them to Washington.. then again, is it not time to evolve back from 3rd world standards? Possibly finding a balance in federal notes and a gold standard so you wont feel the total burden? of carrying a nation with such high levels of Unemployment and free riders?

    Don’t blame the rich for being rich..it’s the American dream.. When are you going to take control of your lives and begin your dream? Less Government is your only hope..not dependency of it.

  • Jadd

    Yeah, we’re in a recession, right?

  • Miljanamandich

    You are kidding right? You thing anybody with even a few brain cells will buy that TP is to blame for the weak economy? That bird just won’t fly,child-brain

  • Miljanamandich

    Bob Cratchet actually worked hard for a living. Not like the clients of our warfare state

  • nancillarypeloslinton

    I guess the moral of the story is that people should get off their dead-a@@’s and become rich in this country so us working folks don’t have to pay for the poor.

  • nancillarypeloslinton

    I guess the moral of the story is that people should get off their dead-a@@’s and become rich in this country so us working folks don’t have to pay for the poor.

  • Dahni

    Random thought, plus an opinion…

    The
    Federal Government has announced they intend to make it more difficult to
    claim Unemployment Benefits for 2011.

    Starting next Monday the forms will only be printed in English.

     This
    came from a friend in Australia.

    “The
    Government returned my Census regarding to my response to the question ==== Do
    you have any dependents ?


    1 million illegal boat people ; 3 million drug fu#ked dole bludgers ; 3 million
    third generation unemployed ; 2 million people in prision ; Half of f&cking
    Africa and Pakistan ; and the majority of the Australian Government is not an
    acceptable answer

    I
    can’t understand their reply === Can you ?”

  • Dahni

    I cleaned a lot of toilets; and carried a lot of furniture up and down stairs and out of and into trucks;  all for min wage.  That’s what those jobs are worth.   Meanwhile I earned a degree in Physics and Math.  Now I have a better job making a lot more money…

© 2012 Mediaite, LLC | About Us | Advertise | Newsletter | Jobs | Privacy | User Agreement | Disclaimer | Power Grid FAQ | Contact | Archives | RSS RSS
Dan Abrams, Founder | Power Grid by Sound Strategies | Hosting by Datagram