Fast food has won back price-sensitive customers with discounts, but some other restaurants have so far resisted. https://t.co/4uC7hjF30T ...

Market Trends & Outlook - The luxury sector is experiencing a split, with ultra-luxury performing well while middle and bottom tiers decline [4][5] - The aspirational luxury buyer has largely disappeared, impacting soft luxury goods like leather goods, handbags, shoes, and clothing [5][6] - The luxury sector is expected to be globally flat in 2025, with potential for only slight growth [3] - There are 50 million fewer luxury consumers than two years ago [4] Pricing & Consumer Behavior - Doubling or tripling prices of luxury goods without noticeable improvements has negatively impacted sales [9] - Consumers are struggling to reconcile the high prices of luxury goods with their perceived value [14] - Younger generations are increasingly prioritizing experiences over conspicuous consumption and status goods [12] Company Strategy & Adaptation - Luxury companies, particularly those focused on logos, may face challenges [11] - Hard luxury goods companies are exploring experiential retail to adapt to changing consumer preferences [12][13] - Luxury companies need to revert to their original focus on providing exceptional in-store experiences [13][14]

Inflation Trends - Open Brand's September CPI report indicates increased price pressure, showing the strongest price increase from August to September since the end of last year [2] - The largest price increases were observed in personal care products, followed by communications devices and recreational products [3] - The removal of the dimminimous exemption in August, which previously allowed packages under $800 to enter the country without duties, is considered a primary reason for the acceleration in these product groups [3][4] - The removal of the dimminimous exemption led to an acceleration of about 06% in September, up from about 05% in August [4] Retailer Strategies and Consumer Behavior - Early data for October suggests a cooling off due to discounting, particularly from Amazon and Walmart, as they compete with each other [5][6] - Retailers are anticipated to remain competitive on pricing, especially for affordable luxury items, due to consumer price sensitivity [8][9] - Discounts were heavily focused on smaller items like personal care products, indicating retailers are targeting price-conscious consumers in the middle and lower income brackets [10][11] Market Outlook - The impact of heavy discounting in early October may smooth out throughout the rest of the month, raising questions about whether it will extend into November and December [7] - Much of the consumption in the US has been on the upper end of the income distribution [9]