Partner Sean Burke Discusses Inflation’s Impact on the Luxury Retail Industry
April 26, 2023 | Clarkston Partner Sean Burke was cited by Yahoo! Finance for his thoughts on inflation and the luxury retail industry. An excerpt of the article has been included below, or read the full story here.
5 Luxury Items Most Impacted by Inflation
Luxury brands are not immune to inflation. According to Clarkston Consulting, luxury goods have a “high-income elasticity of demand,” which means that income fluctuation often determines whether consumers purchase these higher-end goods.
“As inflation drives purchasing power down, middle-class consumers may fall out of the luxury market,” Clarkston Consulting partner Sean Burke wrote. “Furthermore, increased production costs will lead luxury retailers to increase prices in order to maintain profitability.”