Affluent shoppers heading for mid-range stores

Wealthier shoppers are seeking better value for luxury goods.

A survey released by US-based Unity Marketing has shown that wealthy consumers are more likely to shop at discounted stores rather than high-end department stores.

According to the survey, more ultra-affluent shoppers, defined as those with incomes of £150,000 and above, showed they were more likely to shop at mid-range stores such as Debenhams and John Lewis compared to pricier department stores such as Harvey Nichols and Harrods.

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The original survey, which focused on American consumers showed they were more likely to shop at Macy’s (34%) and J.C. Penney (22.4%), than Neiman Marcus (20%) or Bloomingdales (19.4%).

Unity Marketing president Pam Danziger said luxury shoppers have embraced a new value orientation, meaning that luxury products and brands must today must “deliver a meaningful return as measured in greater pleasure, comfort, superior performance, and longevity of wear and use.”

“If the product doesn’t measure up, [affluent consumers] won’t spend the money; rather they will trade down to a cheaper, yet acceptable alternative,” she added.

Danziger said high-end stores like Neiman Marcus have to understand that discounters are increasingly becoming their competitors.



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