This is an extract from the Sunday Telegraph dated 26/1/11:
"Aussie shoppers are proving the saviour of high-end fashion, as luxury brands such as Louis Vuitton expand their stores in Sydney.
As Louis Vuitton and Gucci prepare to open megastores in Sydney's CBD with lavish parties next week, Mulberry, Miu Miu and Bottega Veneta have recently entered Australia for the first time.
Chanel and Prada are also opening new luxury stores.
The Louis Vuitton George Street Maison, understood to have cost almost $10 million, will offer three-storeys of men's and women's fashion as well as personalised services. The French fashion house will hold an exclusive VIP event on Friday to celebrate the launch, and Cate Blanchett is rumoured to be attending.
Louis Vuitton Oceania CEO Philip Corne said the new development had been a long time coming for the brand, which now has 10 stores in Australia.
Recommended Coverage
Louis Vuitton store opens in London Luxury is very much in fashion Aussie shoppers the saviour of high-end fashion, as luxury brands such as Louis Vuitton expand their stores here. Brands selling to well heel LUXURY brands have remained virtually unscathed by the severe retail downturn and sharp decline in spending. "We wouldn't commit to the investment until we found the right space that allowed us to present the brand as we should," he said.
On Wednesday Gucci will also celebrate its latest store opening at Westfield Sydney, the city's mega retail development in Pitt St Mall, which also houses the luxe labels Mulberry, Christian Louboutin, Bottega Veneta and a temporary Chanel boutique, while its Castlereagh St flagship undergoes a $4 million refurbishment.
Its high-end neighbours will include Prada and Miu Miu.
Next year will also see the launch of Christian Dior's first standalone Australian store, which will open on the former Louis Vuitton boutique site on the corner of Castlereagh St.
It's not just our strong economy that is drawing luxury big guns to Australian shores. After years of class anxiety, Australians are only just beginning to flash their cash, says senior IBISWorld analyst Paul McMillan.
"Ten or 15 years ago you would see that among middle-class Australia there was a level of class anxiety, where it was seen as undesirable to flaunt your wealth," he explains.
"This has changed, and as a reflection of how affluent we have become a lot of luxury retailers are now courting this new "masstige" market with entry-level goods that would allow the aspiring luxury consumer get their foot in the door, like a designer bag."
Corne agrees: "People have worked hard and are rewarding themselves."
This is but one article on the current status regarding up-market shopping in Australia. It wasnt too long ago that when the shopping public thought "up-market" they thought of David Jones. They certainly didnt think of Myers. Now that David Jones has positioned itself alongside Myers it has to expect to come off second best, after all Myers knows this particular market well and has been in this sector of the market much longer. In retail positioning and reading the market is king. David Jones is getting it so wrong at the moment. No one can be all things to all people.
DJS Price at posting:
$2.26 Sentiment: Hold Disclosure: Held
