
If statistical indicators are reliable, Americans are reining in personal spending as the U.S. economy spirals toward recession.
But there are always exceptions: The consumer with so much disposable income that the only belt she's tightening is the $600 Fendi faceted gemstone style that goes perfectly with her $4,000 Alexander McQueen pencil skirt.
Or her male counterpart, who buttons up his $4,200 Loro Piana cashmere overcoat before dashing outdoors to climb into his $250,000 Aston Martin.
Wealth makes some people immune to economic slowdowns. An example is singer Fergie, whom I nearly ran into during Mercedes-Benz Fashion Week as I rushed into a show. That same day, she dropped by the Madison Avenue Calvin Klein and bought $30,000 in skirts, sweaters, sunglasses and other merchandise, according to a People magazine report.
It is this type of recession-resistant customer for whom the new Gucci Fifth Avenue megastore opened earlier this month in the heart of New York City, 55 years after the nation's first Gucci store opened two blocks away at the Savoy Plaza Hotel East on East 58th Street.
The new space in Trump Tower is the largest of 232 Gucci stores around the world -- 30 percent larger than the nearby store it replaced -- with 46,000 square feet of selling space on three levels. At 160 feet, the store's facade wraps a corner of Fifth Avenue and 56th Street, and it is one of the largest of any luxury retailers in New York City.
Inside the store, marble floors, bronze glass and mirrors, polished gold and rosewood fixtures, and large windows create an elegant openness and allow the merchandise to stand out. On display are ready-to-wear clothes and shoes for men and women and accessories such as jewelry and bags. Everything is made in Italy except the wristwatches, which are crafted in Switzerland.
A customer can easily drop $5,000 on a dress, heels and a bag.
Gucci executives wouldn't reveal costs or revenue projections, but Women's Wear Daily reported rent of $16 million a year and a first-year sales goal of $100 million.
The 87-year-old brand is supercharging its presence in America's shopping mecca to beef up sales in the United States, which last year was the third-largest market in Gucci sales worldwide behind Europe and Asia (minus Japan).
At the same time overall fashion retail sales in the United States have slid, Gucci has racked up three consecutive years of record, double-digit growth in sales and profits.
Expectedly, the opening of Gucci Fifth Avenue was accompanied by major efforts to get the brand's name in front of the public, which included underwriting a star-studded charity gala at the United Nations during fashion week to benefit Unicef and Malawi children. The event drew some criticism for appearing to be too much of a marketing ploy for Gucci.
Also, to attract buyers to the new store, a limited-edition "Gucci Loves New York" collection of handbags is available there and nowhere else. Proceeds are earmarked for the Central Park Conservancy's Playground Partners program.