The Kurt Geiger boutique on South Molton Street in Mayfair looks cool, even on
an unseasonably warm November day. The impeccably polished burgundy cabinets
are full of the latest shoes. The Gina Rox come with stratospheric heels and
an even giddier price tag — £435. Unsmiling, black- cashmere-clad assistants
dust, arrange, then rearrange the Marc Jacobs bags. Avant-garde adverts
feature the latest boots floating on lily pads. The only thing marring this
chic tableau is a small white sign in the window. It reads: “SALE. Up to 50%
off.”
In its own understated way, the luxury-goods industry, once thought to be
immune to economic trends, is hurting. Sales at Harvey Nichols, Harrods and
Selfridges are down by up to 10% in London in the past three months,
compared with the same period last year. The picture is worse in the stores’
outposts in Bristol, Leeds, Manchester and Edinburgh.
And if it’s bad here, it’s worse in New York, where the strengthening dollar
is scaring off tourists. Sales at Saks Fifth Avenue, Barneys and Bergdorf
Goodman have fallen by about 15%. Ron Frasch, Saks chief merchandising
officer, says: “This is a tough one.” Translation? “The credit crunch is
pushing us off a cliff.”
The problem is that consumers, even well-off ones, are cutting back on
non-essentials. There are still plenty of billionaires around, but it’s not
necessarily a good thing to buy your wife a £30,000 handbag when your
friends’ net worth has halved.
Of course, it’s not all doom and gloom. Luxury products are selling, but a new
chic is emerging, which some brands are better placed to exploit. Classic,
timeless pieces, for example, have never been hotter. “Consumers are going
back to basics and focusing on pieces that will never be fashion-fickle,”
says Marigay McKee, fashion and beauty director at Harrods. “It has to be
well made and classic, yet have enough of a ‘wow’ factor that the woman
knows she will still be wearing it in five, or even 10, years’ time.”
Dresses by Lanvin, Roland Mouret, Balenciaga, Azzedine Alaïa, Bottega Veneta,
Balmain and L’Wren Scott are selling faster than ever because, says Averyl
Oates, buying director at Harvey Nichols, “they offer timeless glamour, but
there’s something unique about each piece that ensures it still makes a
statement”. Dresses represent downturn chic. “They’re a single-item outfit,”
says McKee. “Buy a dress and shoes, and you’re there. We’re seeing girls go
out without bags now. Buy a jacket and you have to buy the shirt, the
trousers, the boots and the belt. It’s way more expensive.” Vintage is also
more sought-after. “Wearing old pieces is the recessionista’s new
favourite,” says McKee. “I was at a dinner with Yasmin Le Bon and Marie
Helvin, and they were saying how great it was to be digging out the cashmere
and the boyfriend jeans.” Brands are also cashing in on the vintage look,
notably Burberry, whose recent Prorsum collection reprised tea dresses and
cardigans. “I like things that are a little more gentle, with a bit of
romance and nostalgia,” says Christopher Bailey, creative director at
Burberry.
Other brands are responding by designing collections that are made to last —
gasp! — more than one season. “More houses are doing a line of basics,” says
Oates. YSL Edition 24 and Balenciaga Knits and Silks feature stylish
separates at “affordable” prices — well, £160 a pop.
It bags, however, scream “fashion victim”, and thanks to a wet summer and now
the recession, shoe sales are tottering like a supermodel in 6in heels.
“Everyone got it wrong about shoes,” says Oates. “We thought they were going
to be the new It bags. We overdid it. The mags overdid it. The buyers
overdid it.”
But classic bags, fragrance and homeware sales are up. Chanel’s quilted bag,
YSL’s Muse, Gucci’s snaffle bags and anything by the logo-free Bottega
Veneta are more popular than ever. Timeless bags have a dual advantage: not
only are they classic, they could have been bought at any time, so are
perfect for the woman who doesn’t want her husband or boyfriend to know
she’s still shopping. Upscale retailers report a sharp increase in the
number of women buying classic bags, often with cash. “I don’t know whether
they want to hide their purchases from their husbands, or have been quietly
stashing the cash under the mattress, or they’ve had the credit cards
cancelled,” says Oates.
Classic fragrances are doing well, especially Chanel. Candles and home spa
products are flying off the shelves, because, says McKee, women are spending
more time at home, but aren’t skimping on primping. “Jo Malone, Acqua di
Parma, and Diptyque are having a great time. It’s like 9/11, when sales of
candles went up 500%.”
When it comes to men, suits sales are declining, but sales of casual wear are
up, especially Jil Sander and DSquared. “Perhaps men who have lost their
jobs, and don’t have any interviews, are catching up on the shopping they
missed during the years when they worked so hard,” says Oates. “I think
we’re going to see some pretty well-turned-out dads on the school run.”
What’s not selling? “Anything bling is being questioned,” says Jean-Christophe
Bédos, the boss of the French jeweller Boucheron. Indeed, jewellery sales
are down in Europe and America, and the fast-growing Asian and Gulf markets
are not making up the difference. Also down are sales of women’s suits,
trouser suits and designer jeans. “People already have enough. Now is not
the time to be buying more,” says Oates. Fur and weekends in the country are
also out. In Notting Hill, the latest joke goes, the wives of out-of-work
bankers are selling their second homes and using their oversized handbags as
weekend retreats instead.
Restaurants are busy, but it’s the chefs, not the sommeliers, who are doing
all the work. “Champagne sales are down,” admits Gordon Ramsay, who, more
than any restaurateur, has benefited from the boom of the past decade,
creating a multi-million-pound global empire. “People still want to go out
to eat, but they are ordering house wine.” Sales of haircuts, blow-dries,
manicures, luxury spa treatments and limited-edition mobile phones are also
tailing off.
The good news is that no matter how bad the recession gets, we still want to
look stylish — albeit in a more sober way. As 74-year-old Giorgio Armani
puts it: “In a crisis, people like to look elegant. It feels correct.”
That’s why he is pressing ahead with chic hotel projects in Milan and Dubai
and new boutiques. It’s a charming idea, and the men and women who run the
luxury-goods brands and upscale retail outlets are quietly hoping — okay,
praying — that the grandaddy of fashion is right.
Where to splurge
Fashion Spend your money on classic, expensive chic, à la Michelle
Obama. For a cheaper splurge, try Topshop’s Boutique collections — Emma
Cook’s cashmere pompom jumper and Preen’s ankle boots give big bang for your
buck.
Home Sheets are not something to scrimp on, and Frette is the best bet
for delicious Egyptian cotton that will last a decade. If things get really
bad, you might start taking to your bed, so you’ll want to be comfy.
Beauty Don’t scrimp. Classic brands are worth the money, and say that
you’re maintaining standards. Head to Chanel for varnish to replace the
weekly manicure and postpone the plucking appointment by investing in an
eyebrow pencil.
Transport A Pashley bike. Solid, statement, chic and the right side of
showy.
Where to save
Fashion Bling is plain embarrassing, so cut out the frills, girls,
they’re just too out of step with austerity chic. Head-to-toe sequins do not
chime with a “concerned about mortgage rates” look. At the mass end, think
twice about Marks & Spencer. Profits are down 44%, so not everyone’s
investing in faux-fur gilets and knicker sets any more.
Home Another state-of-the-art sound system is just plain silly. Stick
to your old iPod and speakers and spend your time (and less of your money)
on your music collection.
Beauty Did you really think that a cream would get rid of your
cellulite? Think twice about Bliss Love Handler (£30 a pop) and go for a
walk instead, fatso. And skip on the green glitter polish — one use only
(surely?).
Transport Porsche. Non, non, non. Falling in value faster than a fund-
manager’s nest egg, flashy idiot wagons are now as passé as the City boys
who drove them.
Gemma Soames
