NEW YORK — The rich are tightening their belts too. Even if it's still a Gucci.
Faced with the sharpest decline in net worth in nearly 50 years, wealthy Americans are reevaluating their priorities and slashing their spending at a rate unseen in decades -- a move that could have dire consequences for luxury stores, high-end brands and the economy overall.
In response to the increasingly subdued shopping mood that began late last year, luxury brands are cutting their inventories, changing the assortment of products they offer and tweaking their advertising messages.
"Fewer, better things," jewelry giant De Beers Group suggests in an ad campaign launched last month.
Sure, many of the ultrarich aren't exactly scrimping. Some are still dropping $100,000 on a fur coat or $600 for a pair of shoes -- but increasing numbers who were never bargain-hunters are picking through mounds of discounted designer goods to save money in an uncertain time.
And why not? Deep discounts are making it a great time to stock up on high-end clothes and accessories, whether it's a Chanel suit, a Prada bag or a $1,000 pair of Christian Louboutin shoes with their bright red soles.
But if conspicuous consumption was a hallmark of the luxury days of old, those still shopping till they drop are taking a more low-key approach, apparently in deference to the new breed of have-nots.
"I keep a stash of brown paper bags," said Sara Albrecht, owner of Ultimo, a Chicago-based designer clothing boutique. "No one will ever know."
Albrecht said she used to keep a few bags on hand for those who wanted to keep their purchases hidden from their husbands. But now she has a bigger pile in response to requests from shoppers hoping to keep their buying secret from friends and neighbors.
Still, the affluent clients who do come in are buying fewer items and choosing special pieces that are less flamboyant, she said. Albrecht said her shop has suffered a 20% drop in sales from a year ago.
Luxury sales overall declined 34.5% in the first week of December from the same period in 2007, according to SpendingPulse, a data service provided by MasterCard Advisors. They were down 23% in the five weeks ended Dec. 6.
Such behavior is dramatically different from even a year ago, when luxury shops couldn't keep up with the appetite for extravagance. A-listers wanted $5,000 handbags, not the $500 versions they had bought in the past.
