Top labels still matter

CHRISTMAS sales are reported to be lower than last year, but luxury items are still on the wish lists for well-to-do South Africans.

CHRISTMAS sales are reported to be lower than last year, but luxury items are still on the wish lists for well-to-do South Africans.

Grant Ravenscroft, owner of luxury goods retailer Croft & Co, said pre-Christmas sales have taken a hit from the global economic slowdown.

"The buying cycles are more erratic, turnover is more erratic," he said, though corporates are still buying a lot of Christmas gifts.

"The bottom line is you still need to look after customers - people spend money with companies and if there's a culture of giving gifts, you can't suddenly do away with it."

Top sellers include glass sets with alcohol, business card holders, cigars, cufflinks and Montblanc pens.

"People still want the label, but instead of spending R2000 per item, they're spending R1200 or R1000."

In terms of individual customers' purchases, Ravenscroft said men's swimwear, shaving accessories, cigars and cufflinks are popular purchases.

"Regardless of the recession, if you have had a decent year you still get bonuses."

Ravenscroft is hoping that sales will accelerate from this week, once people have received their bonuses and the building industry has closed.

Anita Khumalo, assistant manager at the Montblanc store in Sandton, said sales are just as strong as last year: "People are shopping a lot. They are still buying expensive gifts - briefcases, pens, wallets, women's jewellery, cufflinks."

Khumalo said Montblanc's Christmas rush started at the end of October and sales took off from the beginning of December. Consumers with the budget to shop at Montblanc complain about the prices, she adds, but they are still buying gifts at the store.

"Many of our clients are from Angola and the [Democratic Republic of] Congo and they don't mind spending thousands."

The Christmas rush at luxury menswear retailer Fabiani is a lot slower than last year.

"This year is actually very quiet," said Michael Ilunga, sales manager at the Fabiani store in Sandton City.

"But it's a roller coaster. Today we're up, tomorrow we're down. Some days it's R50000, then R80000, then R40000. Some days we're on target and other days we're above target.

"But, for example, a R4000 pair of jeans: consumers are still buying them. But if a guy last year bought five shirts, this year he'll probably buy three, because he'll think twice about putting it on his credit card," said Ilunga.

Urban Luxury Brands, retailer of trendy Baby Phat and Phat Farm labels, said sales have picked up in the past week. "It's everything - bags, jewellery, jeans," said Shaun Merckel, store manager at ULB at Clearwater Mall on the West Rand.

"You'll get people complaining about prices if it is an expensive brand. And you'll get people who don't give a damn; they'll blow R15000 in one go."

Luxury toiletry and homeware label Charlotte Rhys said the retail market is softer than last year, but the hospitality market - it supplies hotels with toiletries - is still very good.

"Sales are definitely a little bit off from last year," said Shaun McDermott, director at Charlotte Rhys.

"There is less money around in Cape Town, but in Johannesburg there is quite a lot of corporate business."

He said the stores have had a lot more people asking for discounts and looking for bargains.