U.S. luxury chain stores expect bleak holiday sales
Tiffany, Nordstrom and Coach may see December sales growth slow in what the National Retail Federation is predicting will be the worst U.S. holiday shopping season since 2002.
Retailers that cater to America’s richest consumers are losing their least-affluent customers — those who buy jewelry and designer scarves only when flush with cash — during the biggest selling season of the year.
Falling home values are discouraging purchases in the fourth quarter, a period that accounts for a third of retailers’ annual earnings, according to the International Council of Shopping Centers.
For example, Neiman Marcus said it faces “somewhat challenging” client demand. The average annual household income of luxury shoppers, says Citigroup analyst Deborah Weinswig, ranges from $100,000 at Nordstrom to $250,000 at Neiman Marcus.
Sales growth at the six major U.S. luxury-goods sellers may shrink further next year, with revenue rising 5 percent to 8 percent, down from “high-single-digit” percentage gains this year, the New York-based Luxury Institute said last week.