Tuesday, September 4, 2007

"Smaller" cities, luxury retail

An interesting trend noted in today's WSJ is the movement by luxury retailers such as Tiffany, Michael Kors, Ralph Lauren, Louis Vuitton and Burberry into markets where you usually do not expect to see them. Austin (which makes total sense) is the focus here, but other traditionally non-major markets such as Tucson, Nashville and Jacksonville are also mentioned. I guess retail expansion is at every level. The one sure bet here? They are not coming to Kankakee.


Jeff Brown said...

Also David, what do you think this trend means for the economy, and more importantly, what these retailers' research has told them about it?

Right. :)

David Stejkowski said...

Bingo, Jeff. It is either that the economy is not as bad as Chicken Little says, or that the rich will continue to get richer. I subscribe to the former theory but either way the deals make sense. The margins are lower as well because the companies are not paying Fifth Avenue, Michigan Avenue or Rodeo Drive rents.