Luxury retail companies are often considered to be relatively sheltered from economic slowdowns compared to their mass-market peers. This was shown by their quick recovery from the 2008 crisis, partly due to their target audiences being the last to feel the effects of a downturn as a result of the cushion their wealth provides.

However, economists are now forecasting a recession that is longer and deeper than initially predicted and luxury retailers will face new and different challenges. Companies are being forced to increase the price of their goods to deal with higher input costs and protect margins, but even wealthy consumers may reach a tipping point where the price tag becomes too high.

Erin Brookes, Managing Director and Head of Retail & Consumer, Europe discusses how cautious management is required to protect luxury retailers from the impacts of an impending recession in this recent Retail Week article.

To learn about how we can help retailers, visit our consumer and retail pages and check out our latest report on changing consumer values. Or, contact us to see how we can help you transform your consumer and retail business.