News

Consumers getting more price conscious, luxury retailers hitting new lows

Discount shopping on national brand an increasing trend, reports analyst.

July 30, 2015

Off-price retailers are gaining in popularity, and luxury retailers are likely feeling the pinch, according to a reportat CNBC. Top-tier retailers, including Ralph Laurent, Coach and Michael Kors, are being bypassed by shoppers, and off-price competitors, such as Costco and TJX, are gaining ground boasting a 25-percent boost, according to Oliver Chen, a Cowen & Co analyst.

"What's great about TJ is they're already market share leaders in Europe, and being off price is a globally appealing kind of phenomenon," Chen told CNBC.  "If you think about the consumer for back to school and fall, it's all about promotions. It's all about getting discounts on national brands. So that's a key theme which is about the new normal, the new consumer."

One reason may be that consumers are looking for super deals and enjoying the experience much like a “treasure hunt,” Cowen told CNBC. Another trend evident, said Cowen, is that handbags are now losing traction to athletic wear and wearables.