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If you're bored I just read an article that said the wealthy treated themselves during the holidays. People who are bored can get rid of their boredome by shopping. Rich people who are bored can show at stores like Tiffany & Co.
I personally love that these posts stick around forever. It's nice to see what people have to say over the years.
And speaking of Tiffany & Co.....my namesake jewelry store, did very well over the hopidays. As did other high end retailers did well over the Christmas Holidays and shopping season. Lots of bored shoppers?
Wealthier shoppers traded up to more expensive gold and diamond jewelry from silver charms. Designer clothing and purses were back.
The splurges are good news for the economy, because the richest 5 percent of Americans, those making at least $207,000 annually, account for about 14 percent of all spending. And consumer spending makes up about 70 percent of the economy.
They weren't just buying gifts — well, not just for others. They were also buying gifts for themselves and to have a nice splurge.
The splurges reached a head the week before Christmas. Average daily spending reported by upper-income shoppers rose 45 percent to $183 during the week ending Dec. 26, according to a Gallup Poll. For all shoppers, the figure rose only 18 percent to $85 that week.
Six months ago, wealthy Americans got spooked by a stock market slide and cut back spending. Now, they are trading back up to higher-status brands as the stock market bounces back. The rich in booming Asian economies, especially, are ramping up spending.
Tiffany & Co recently. raised its profit outlook for the year because of better-than-expected holiday sales, and noted particular strength in more expensive fine jewelry and diamond rings. Silver jewelry, which had propped up Tiffany's business when its customers hit the brakes on spending in the recession, was weaker.
Revenue at stores open at least a year rose 7 percent in the U.S. in November and December and was even stronger in Asia, rising 15 percent. That's a key measure of a retailer's health because it excludes the effects of stores that open or close during the year.
The jeweler's report backs up strong December sales reports last week from pricey department stores Saks Inc., Neiman Marcus and Nordstrom. All said revenue at stores open at least a year rose significantly in December compared with a year earlier.
Among retailers at all price ranges, sales gains were solid but less spectacular, averaging 3.8 percent for November and December, according to the International Council of Shopping Centers.
Luxury spending still isn't quite back to the heights seen before the recession, but it spiked 8.5 percent Nov. 28-Jan. 1 over the same period last year, according to MasterCard Advisors' SpendingPulse. For jewelry, the rise was 10.4 percent.
The Dow Jones Industrial Average has risen 19 percent since the beginning of July.
That and the return of bonuses on Wall Street and elsewhere have helped the wealthy feel better about more conspicuous consumption, said John Lonski, chief economist of Moody's Capital Markets Research Group.
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