This week, the cream of the luxury retail crop chewed the fat at a summit taking place at the home of the super-rich, Monaco.

A string of top-end retail chiefs including LVMH’s Bernard Arnault and Tod’s chairman Diego Della Valle signalled that consumer confidence was returning within the sector and poured scorn on lesser retailers’ propensity to churn out low-priced goods in reaction to the recession – a move that, according to Arnault, strengthens luxury retail’s position.

“We don’t buy our dreams at the supermarket,” he is quoted as saying.

However, shoppers’ aspirations have undoubtedly altered over the past nine months and it seems unlikely that attitudes will bounce back as soon as Christmas – as per Della Valle’s comments – or whether they will return to similar levels at all.

Some luxury retailers are in danger of sounding out of touch with shoppers who crave quality and exclusivity, but find it distasteful to talk about consumption on the levels experienced prior to the crunch. Of course, in certain of the upper shopping echelons, customers will continue to flash the cash, but undeniably attitudes have altered among the majority.

At first glance, signs are that luxury is bouncing back. Today, luxury retailer Mulberry revealed full-year pre-tax profits came in ahead of expectations and that like-for-likes over the first 10 weeks of the new financial year soared 21 per cent. The robust performance was explained by strong growth in its final quarter from its UK operations.

However, a closer look reveals that the growth has been driven largely by the sale of cheaper-priced accessories – including its Mitzy handbag range – and soaring sales at its off-price stores, which sell discontinued ranges at lower prices. Mulberry also benefited from an influx of tourists to London taking advantage of the weak pound.

At the Business of Luxury Summit in Monaco, Jimmy Choo chief executive Josh Schulman said that he did not believe that price was a barrier to entry. And yet, the exclusive shoe retailer has just announced a collaboration with high-street fast-fashion retailer H&M to sell shoes for £30, a vast discount to its average £400 price tag.

Burberry’s Angela Ahrendts called for a return to “core values” by luxury retailers and brands. This doesn’t have to mean remaining aloof and out of touch with your shopper or moving so far away from your original price positioning that you lose long-term credibility.

It doesn’t mean that brands must appeal to a mass market, damaging its exclusivity. However, it does mean being realistic about shopper mindsets and adapting to meet them in the long term.

As Mulberry chairman and chief executive a said today: “We feel there’s a move away from… extravagance. That’s almost become unfashionable”.