Retailing

For Luxury Goods, the Recession Is History


Luxury chains including Barneys New York and Saks are selling costlier goods, scaling back discounts and promotions they offered to attract shoppers during the recession.

The average price for U.S. luxury goods, excluding jewelry, jumped 11% in March from the year earlier, according to MasterCard Advisors' SpendingPulse data. Says Milton Pedraza, chief executive of New York-based research firm Luxury Institute: "The get-it-cheap party for luxury consumers has ended."

Average price of a luxury handbag sold at U.S. department stores:

Pre-recession: $2,000

2009: $1,600

2010: $1,800

Data: Hana Ben-Shabat, A.T. Kearney

Timberlake is a reporter for Bloomberg News in Washington.

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