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Handbag spend hits all-time low, claims consumer report

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October 30, 2019

Sales of handbags and totes in the U.S. are down more than 20% this year, as compared with 2016, according to NPD Group's Consumer Tracking Service.

The drop is no small dip according to NPD Group Analyst Beth Goldstein who told CNBC it's a "major shift."

"Today's consumer is looking for a solution, not just a bag. Consumers expect a lot from the products they are buying, from function and versatility to a brand's engagement in the social and environmental issues that matter to them, and the luxury market is not immune to these pressures," she told CNBC.

In response, retailers need to become much more customer-centric, advised the analyst.