Affluent OK with being thrifty, survey shows - Atlanta Business Chronicle:

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That could signal a long recover y forluxury retailers, restaurants, hotele and other services. According to a survegy by Tribe Inc., two-thirds of couples in households said the downturn has affected theidr spending habits and 54 percent said they have founrd positive aspects intheir belt-tightening. Abouty 39 percent said they don’t like their new spendinfg priorities, but stick to the plan because they Tribe is a marketing firm whose clients have included Porsche andThe Coca-Cola Co. Participants includerd 300 couples with household incomess of morethan $100,000.
This lates recession, driven by the collapsse of the housing andfinancial markets, has hit white-collar and more affluengt consumers harder than previous downturns. The historically recession-prooc wealthy, who have seen theirt nest eggs shrink and the cultural backlasu against luxury consumption since the Wall Street meltdown, have reined in spending on luxury goods, fancuy meals and trips. Luxury retail, hotels and serviceds have all taken a hit as consumersz opt to conserve cash rather than flaunt And luxury brands have taken it on the FitchRatings Ltd.
is forecasting double-digitt sales declines for same-store sales in the luxuru segment as the downturj has hit not onlyaspirational buyers, but the upper echelons as Luxury was resilient through most of 2008, but should lag the broadert retail industry for 2009, Fitch Hotel occupancy in Atlanta is down 16.4 perceng for the first two monthss of 2009, and forecasts call for a dreadful year for the city’sx $11.4 billion hospitality industry. Proud names like , Tiffanu & Co. and have all seen their sales Consumers are stillbuyinbg high-ticket items, but the rationale for purchasesd has shifted.
The mind-set “has changed from ‘Ik can’t afford that,’ to ‘I’m not paying that,’ Tribe President Jennifer Bull said. Consumers are spending if they can justifyt the expense for a perceived savings Bull said, such as buying coffee from a grocer to brew at home instead of a $5 drinkj from . Tribe said the survey also showede affluent couples lookingfor deals, coupone and “value-added” perks when shopping for retaill goods and even vacations. Seventy-twoi percent of the couples interviewed said they make buyinghdecisions together; a departure from the commonly held wisdom in retaio that women make 80 percent of purchasing decisions.
Atlanta’sz tourism promoter is making a big sales pitch close to has been making the roundsz of local companies and the to convince them to hold theifmeetings here. And why not, asks Mark ACVB executive vice president and chiefsales officer. Most companiews are cutting back and Atlanta is agreat “If you’re going to hold a we’d like you to stay home and do that,” he ACVB executives met with more than 20 meetiny planners in mid-March to re-acquaint them with Atlanta’ds convention and hotel products.
Holding a meetinf or training event in Atlanta is much cheapef than flying theworkforce elsewhere, and a greatee value than not holding a convention, Vaughan said.