What Are the Most Popular Expensive Stores for Shopping in The US? Let’s Find Out….
by Ankita Tripathy Business 28 May 2024
Is your motto value for money? Or are you fascinated by big brands only? Let’s Find Out About Expensive Stores in this article.
Either way, this article is for you.
Here, we will discuss some of the favored expensive shopping stores in the US. All of us know about them.
So, why will you read this article? It includes the pros and cons of shopping at expensive shopping stores. I have also discussed business strategies and the popularity of the typical expensive shopping stores in the US.
Above all, what are expensive shopping stores?
These are mainly luxury stores. They stock luxury brands mostly.
How to detect a luxury brand?
All the luxury brands are reputed for their high-quality products, exclusive product range, and high prices.
Some of these expensive shopping brands in the US are Louis Vuitton, Chanel, Gucci, and others.
Importance Of Luxury Shopping Experience
If you once run into these luxury brands, they will define your lifestyle quotient, social status, and frequently your identity. So, most customers get a sense of high indulgence when shopping from these expensive stores.
Experts say that most products in these expensive shopping stores are highly exclusive.
In 2024, the revenue from the expensive shopping stores in the US is US$77.28bn already.
Therefore, most Americans shop from these expensive shopping stores despite the high price points.
Benefits of Shopping at Expensive Stores
As I told you, expensive shopping stores can satisfy many critical personal touchpoints. People consider these as the benefits of shopping at pricey stores.
High-quality Products
Investopedia says that higher prices cannot justify the products’ quality. However, a famous statement in macroeconomics is that:
“Price is the index of quality.”
However, research shows that many American retail brands, like Gucci and Louis Louis Vuitton, offer premium fabric, design, and stitching.
For instance, Louis Vuitton uses only calfskin and cowhide leather for refined and delicate finishes.
Their sourcing team selects the vendors that supply the best hides only.
Exclusive And Unique Items
Most Americans prefer to shop for unique and designer items from expensive shopping stores. For instance, the average receipt price of Oscar De La Renta is over $3000.
People pay this price for exclusivity and personalization.
For instance, Gucci sells their Vintage Gucci Limited Edition Embroidered and Beaded Trench Coat NWT for $12000.
The VRIO analysis shows that the products are not unique in them. However, the brand tagging and listing on expensive shopping stores makes you feel so.
Prestige And Status Associated with Luxury Brands
A GWI research shows that 63% of American customers want the sign or logo of their favorite luxury brand on the product.
So, a sense of status is associated with the luxury items that we buy.
Americans also derive a sense of high prestige from luxury goods. That’s why only 5% of premium customers regularly buy 40% of their products from expensive shopping stores. The others buy occasionally.
To sum up, most Americans want the prestige of buying a product from Louis Vuitton or Prada.
Challenges of Shopping at Expensive Stores
Mainly, we face a budget issue while shopping from the expensive shopping stores. But there are other challenges as well. I discussed those challenges here.
Cost-Prohibitive for Many Consumers
Excess savings of US households have reduced to only 10% of their disposable income. So, they can’t afford to shop regularly from expensive shopping stores.
A Reddit study found that Americans with over $ 800,000 in household income can afford to shop from expensive stores with luxury brands. But SoFi says that only 12.3% of Americans earn this much.
So, cost prohibition is one of the critical challenges of shopping at expensive stores.
Limited Accessibility
“Luxury fashion and retail brands are increasingly vulnerable to supply and demand shocks. The need for traceability and control across supply chains is paramount, given erratic and localized demand and unpredictable supply disruptions”.
– Luxury Daily.
So, we can understand that most luxury brands make their products in limited quantities.
They cannot always source the same quality of raw materials.
However, many articles say that expensive shopping stores have fewer items in stock to retain their craving among people.
Most e-commerce sites and famous department stores need more premium brands in stock.
The brands want to retain a unique portfolio.
Suppose you go to a Target store and find a Prada jeans range among other economic ranges. After that, your brand fascination will undoubtedly go down.
Pressure To Keep Up with Trends and Maintain Image
Market researchers say that keeping up with trends is the biggest challenge for expensive shopping stores.
We want an excellent in-boutique shopping experience from them. The shopping experience defines their image in our eyes.
At the same time, they must maintain a minimum of customer traffic. Otherwise, they will need help to meet their sales traffic.
The expensive shopping stores also feel the pressure of representing the fashion calendar. Every year, they must release 4 to 10 collections to keep up with the fashion trends.
However, the major catch is that they need help to sell unsold products. It impacts the revenue generation rate.
As a result, most expensive shopping stores put up fewer products in each product line.
Popular Expensive Shopping Stores
Want to shop luxury goods to give a kick to your lifestyle. But don’t know which are the most popular luxury shops in the US? Consider this list.
Chanel
In the US, people with net income between $9,000 and $10,000 have Chanel merchandise. Chanel maintains the rarity of their products. They introduce new products once every 10 to 12 years to prevent their products from going out of trend.
Chanel recorded a revenue of USD 17.2 billion (about $53 per person in the US) in 2022. By far, it is their highest annual collection. It shows that the popularity of their products is increasing in the US market.
Louis Vuitton
The sales of Louis Vuitton are higher than most luxury brands in the US. Its revenue was $93.243B in 2023. In a year, the revenue grew by 11.76%.
They have 1218 stores in America. Europe is in the following, with 1213 stores.
However, you will get the same premium quality of LV products anywhere. It happens because of their controlled manufacturing and distribution.
They work with suppliers directly. As a result, they can regulate the quality of their fabric.
Gucci
Gucci products are listed at very high price points. Do you know why?
The reason is that Gucci wants more people to buy their products. However, you will find spontaneous ads for Gucci. But why?
Gucci uses this tactic to maintain the brand’s popularity. They want people to be aware of the brand. However, few people can afford a Gucci product due to its high price.
They have 160 stores in the whole US.
Prada
Prada follows the same strategy as Gucci. The expensive Prada shopping stores provide a premium boutique shopping experience to customers. They have only 54 store locations in the US. However, Walmart has 4717 stores throughout the US.
The reason is apparent. The Prada nylon handbag costs $1000 to $2000. Only a limited number of customers can afford their products.
Hermes
Hermes has the highest retail value. They maintained a retail value of 103%. However, Chanel only has a retail value of 87%. Also, Louis Vuitton’s retail value is only 92%.
Strategies for Successful Shopping at Expensive Stores
I know many Americans can’t afford shopping from the expensive shopping stores. But I will discuss some helpful strategies here. These strategies will help you to shop from these stores.
Set a Budget
Firstly, I recommend you shop from expensive shopping stores during festive shopping only. You can use 1% of your annual income for brand shopping.
The products of Gucci or Prada don’t go out of fashion easily. So, you can sustainably wear the products also.
Research Before Making a Purchase
There are many listing sites where the luxury retail products are available at a discounted rate. In fact, you can visit Vivrelle and rent a luxury item. This website gives luxury apparel and accessories for rent for occasions.
I will also recommend the website called TheRealReal. This website lists the maximum luxury items of different brands which are on sale.
So, you must search for the best websites or stores in the US that have discounts on luxury goods throughout the year.
Consider Resale Value When Investing in Luxury Items
Have you heard of Harper’s Bazaar? This website allows you to sell your luxury products at a fair rate. Other websites like PoshMark, StockX and others also purchase these products from you.
So, you can check the resale value of a product when you buy it firsthand. As a result, you can make up for the pocket pinch by reselling it later.
Conclusion
I think that very limited Americans shop regularly from the expensive shopping stores. But most people in the country aspire to have a Gucci flora or a Louis Vuitton hide leather handbag.
The main benefits of these expensive shopping stores are that they give you a lifestyle boost. When you flaunt their products, your social status and prestige also boosts.
But most Americans do not earn above $70000 annually. So, regular or frequent shopping from luxury brands is not recommended for them. Don’t fall into the credit loop or debt trap to maintain your lifestyle.
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