New research has indicated that in a time when people are most tight with their income and looking for more ways to save than spend, luxury appeal and profit has soared.
2011 is said to be a record year for the luxury market, and is predicted to increase by 10% beyond its current which is estimated at 173 billion (ultimateluxurycommunity.com). In light of this new research it is evident that the consumer is indeed not dead but well alive and kicking freely, giving way to the fact that people are gaining confidence in their spending.
"Retail sales increased 1.1% in September, the biggest gain in seven months, and double what economists projected. Retail sales are a key barometer of consumer spending which helps drive economic growth (TheNewYorkTimes.com)
It's important to note that the government looks a retail sales for consumer spending each month, household spending accounts for 70% of the US Economy and that ranges from detergent to clothing. And if spending falls sharply than a recession is more likely.
"Stocks in both Canada an US just had their second up week in a row, with this week's performance showing the most powerful gains since the early stages of recovery two years ago" (TheGazette).
This surge gives hope that Europe will not face a financial meltdown and hopefully allow the US and Canada to gain steady economic growth.
With the way stocks have been averaging out these past few weeks it is clear there has been a significant boost in the savvy shopper's step.. In truth, retail has served as a indicator of the consumer's confidence, the consumer's attitude towards the potential for growth and an ever ending confirmation of the future.
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