‘Even wealthy consumers may reach a tipping point where prices are too high’
By 
Erin Brookes2022-09-20T05:30:00
Careful management is needed or luxury retail – often insulated from the effects of downturns – may not emerge unscathed from the impending recession, warns Alvarez & Marsal’s Erin Brookes
Luxury retail companies are often considered to be relatively sheltered from economic slowdowns as many high-end brands manage to maintain stable performance in comparison to their mass-market peers during recessions.
Following an initial shock at the outset of the 2008 crisis, luxury retailers quickly recovered and some of the biggest players – such as Gucci and LVMH – achieved flat and even positive growth that year.
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