Tuesday, January 24, 2017

Luxury stores face a triple threat, as potential store closures loom

Shoppers holding Gucci shopping bags enter a taxi on Fifth Avenue in New York.After decades of opening stores as a means to fuel their growth, a new report has concluded that high-end retailers need to pump the brakes on their expansion plans. In some cities, they'll even need to close some of their existing locations.

According to The Boston Consulting Group, a triple threat of headwinds has led to a slowdown in the personal luxury goods market. Namely, consumers are shifting their spending toward vacations and wine; the internet is grabbing a larger chunk of spending; and China's red-hot growth is settling in at a more moderate pace.. . . more

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