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Impact of the shrinking dollar
Without question, European materials and imported product will be more costly this year. But the overall impact of a shrinking dollar actually benefits the United States marketplace, says Davidowitz. Foreign tourists are pouring into America, taking advantage of lower retail prices, while boosting American exports at home. (During the holiday season, British airlines even offered special “holiday weekend shopping” flights from London to New York.) And even though a struggling national economy may mean tighter budgets for most domestic consumers, Cohen adds, they still understand one fact: “Accessories are priced more affordably than an entirely new outfit.”
Will rising energy prices and higher living costs affect accessories sales? Not much, says Feller. “At the end of the day, if there’s something compelling that consumers want, they’ll buy it. But accessories must provide a reason to buy.”
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