I enjoyed this article which explores how the rapidly expanding cult of frugality, born out of the recession, seems likely to persist through the recovery. Consumer spending is still stunted in comparison to economy-wide growth, and savings rates are still considerably higher than before the recession.
The most interesting tidbit from the article, I thought, was the data concerning luxury spending. High-end retailers are making bank as the economy begins to normalize, "Nordstrom's revenue in stores open at least one year jumped 16.8 percent last month. Saks' surged 12.7 percent."
The author attributes this to wealthy consumers feeling more comfortable spending again, but I wonder if the cult of frugality could itself be a contributor. The frugality and simple-living blogs extol the virtues of buying quality, not quantity, especially in regards to clothing. (It's a message I've taken to heart. I buy mostly second hand, but I'm buying the cast-offs of Nordstrom's and Saks' shopping sprees.)
Is my hypothesis totally off the wall? Has the recession (or whatever inspired your frugal journey) altered your relationship with luxury goods? Are you more or less likely to buy "quality"?
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I like your hypothesis and I'd be glad to see that frugality is going to survive the recession--although I'm not sure the recession is really over. I'm a pessimist, I admit it :)
ReplyDeleteI wonder if part of the reason that frugality is sticking is that people have learned their lesson about credit! That would be a wonderful thing. And quality over quantity sounds smart too. I saw a headline recently that 'casual dining' chains are doing very badly these days. It makes sense. I'd rather go once in a blue moon to a nice restaurant than often to places where the food doesn't rival my own. . .sounds like the same thing with clothes--better and less often.
Everything I've ever bought at Nordstroms has lasted forever--I'm not exactly a 'high end' customer.