The forecast looks clear and sunny for US consumer spending this year, but the luxury goods market is facing an uncertain climate. A new report from Bain & Co. reveals that the global luxury market is at its weakest since the recession, citing a slowdown in consumer spending and political upheaval in critical markets behind the slump. However, there is a silver lining. The same report predicts luxury brands will experience long-term growth, even if it is slow and steady. Fashion house Burberry is an excellent example of this. The retailer posted positive quarterly earnings alongside a profit warning to investors. Mulberry also issued a profit warning in the third quarter following a steady downturn in revenue.
For most Americans, ‘tis the season for pumpkin spiced lattes and apple pie. For retailers, however, it’s a critical time to gear up for the holiday shopping season. This is no surprise – the International Council of Shopping Centers and eMarketer predict up to a five percent increase in US retail sales during November and December 2014. This upbeat forecast has brands placing a stronger emphasis on digital shopping tools this season, such as beacons, and testing new methods to enhance the shopping experience.