Luxury Lives: Coach, Burberry Post Stronger Sales
Wednesday, April 21, 2010
Looks like affluent people are feeling safe about spending again: Coach says its fiscal third-quarter sales jumped 12%, and Burberry says that its retail sales gained 15% in the second half.
Patricia Pao -- head of the Pao Principle, a New York-based consulting company -- says she isn't surprised, and that the strong pickup some luxury retailers saw over the holidays is building steam. "The Chanel boutique in Houston basically was out of merchandise four days before Christmas," she tells Marketing Daily. "During the recession, it was not considered 'cool' to shop. So right now, people with money are spending because of that pent-up demand. And interestingly, so are people with less money, not just because of pent-up demand, but also due to the new merchandising direction of prints and bright colors."
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