Luxury, in retail, makes a comeback

NEW YORK, Dec. 18 (UPI) -- The estimated gain in U.S. luxury goods sales is outpacing the overall expected 3.5 percent jump in retail sales for 2010, a prominent trade group said.

Luxury goods sales are expected to increase 7 percent over 2009, the Los Angeles Times reported.

Michael Niemira, chief economist at the International Council of Shopping Centers, said the influence of the affluent on the economy was pronounced. About 40 percent of all consumer purchasing is money spent by the wealthiest 20 percent of consumers, he said.

Share prices for luxury-oriented corporations, such as Tiffany and LVMH, Louis Vuitton's parent company, reflect investor confidence in luxury production and sales, the Times said.

As a group, shares of companies that cater to the wealthy are up more than 45 percent this year. The broad Standard & Poor's 500 index, by comparison, is up 11 percent this year.