Archive · 5 Sep 2025
Wealthy Shoppers Absorb Higher Prices as Retailers Test Full-Price Strategy
Some clothing stores are trying to sell clothes at their regular prices instead of having sales.
They're hoping that rich people, who still have money to spend, will buy them.
Stores like Levi's and Aritzia have noticed that these shoppers are still buying, even when prices are a bit higher.
Rich people's money comes from things like stocks doing well.
Stores are also using new technology to give sales only where needed, instead of big sales for everyone.
They are doing this because tariffs, or extra taxes, have made some things more expensive.
So, stores are trying to sell things at the full price as much as they can.
Several clothing retailers are testing full-price strategies.
Wealthier shoppers are showing resilience to higher prices.
Levi's saw no slowdown in demand after raising prices.
Aritzia plans minimal discounts for the holiday season.
Stock market gains and low debt bolster affluent consumers.
- Who
- Levi's, Aritzia, Ralph Lauren, Under Armour, Abercrombie & Fitch, and wealthy consumers.
- What
- Apparel retailers are testing full-price strategies, targeting wealthier shoppers.
- When
- Retailers made announcements in early August and at a Goldman Sachs conference in early September.
- Where
- United States.
- Why
- To maintain profit margins, despite the impact of tariffs and economic fluctuations.
- Retailers Mentioned
- Levi's, Aritzia, Ralph Lauren, Under Armour, Abercrombie & Fitch
- Wealthy Consumer Income
- >$100,000 (Levi's); >$250,000 (Richest 10% of Americans)
- Full-Price Strategy
- Focus on selling more products at full price, fewer discounts.
- Impact of Tariffs
- Retailers testing consumer tolerance for higher prices due to tariffs.
- Consumer Spending
- Wealthy consumers are largely unaffected by economic shifts.