Jennifer Prentice, a medical- equipment saleswoman in Minneapolis, once had no qualms about dropping $600 or more for Gucci purses. Now she spends $300 for Coach Inc. bags and is filling in her Burberry wardrobe with pieces from J. Crew.
When stock markets tumble, wealthy U.S. shoppers typically cut back their visits to such luxury emporiums as Saks Inc. and Nordstrom Inc. Yet even as the markets have seesawed, they’ve kept right on spending.
Mac McKay entered this year ready to spend after sales at his flower shop in Arlington, Virginia, rebounded. He planned to take his first vacation since the recession and start a $30,000 kitchen renovation.
Last holiday season, literary agent Linda Chester bought herself a sheared sable fur coat and red evening gown, both from Ralph Rucci, and designer suede leggings. This season, the bicoastal fashion lover settled for costume jewelry earrings from SoHo designer Iradj Moini.
Tumi Holdings Inc., the designer of black-nylon luxury travel bags, is seeking as much as $300 million in an initial public offering as retailers of higher- priced goods outpace the rest of the industry.