Luxury retail companies are often considered to be relatively sheltered from economic slowdowns compared to their mass-market peers. This was shown by their quick recovery from the 2008 crisis, partly due to their target audiences being the last to feel the effects of a downturn as a result of the cushion their wealth provides.
However, economists are now forecasting a recession that is longer and deeper than initially predicted and luxury retailers will face new and different challenges. Companies are being forced to increase the price of their goods to deal with higher input costs and protect margins, but even wealthy consumers may reach a tipping point where the price tag becomes too high.
Erin Brookes, Managing Director and Head of Retail & Consumer, Europe discusses how cautious management is required to protect luxury retailers from the impacts of an impending recession in this recent Retail Week article.
To learn about how we can help retailers, visit our consumer and retail pages and check out our latest report on changing consumer values. Or, contact us to see how we can help you transform your consumer and retail business.
Richard Holt Recognized in 2024 NACD Directorship 100 for Excellence in Corporate Governance
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Managing Director Richard Holt has been recognized as a 2024 NACD Directorship 100 honoree in the Governance Professionals and Institutions category. This prestigious award celebrates leaders who have shaped the landscape of corporate governance and boardroom practices through innovation, courage and integrity.
Navigating CEO Transitions: How Board Engagement Shapes Leadership Success
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In our latest article, Managing Director Paul Mussellman and Senior Director Peter Hill shares actionable strategies for a successful CEO transition. Learn how to implement effective business reviews, talent assessments and compensation alignment to empower your new CEO and drive growth.
Better Design, Better Business (Part Two): Embracing Radical Innovation in Product Performance Optimization
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In today’s fast-evolving markets, incremental improvements aren’t enough. Discover how Alvarez & Marsal’s 360° approach to radical innovation in product performance optimization can drive profitability, sustainability, and long-term success.
Mike Cremin Recognized as a Top 25 Travel and Hospitality Consultant and Leader of 2024
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The Consulting Report proudly announces Mike Cremin, Managing Director at Alvarez & Marsal, as one of The Top 25 Travel and Hospitality Consultants and Leaders of 2024. These leaders play a crucial role in optimizing revenue management, enhancing guest experiences, and navigating the complex regulatory landscapes of global tourism.
