Michael Wong

While offline consumers flood malls looking for the lowest prices, other consumers are going online to research and identify luxury items, according to surveys conducted by Unity Marketing that analyze shopping trends. According to Unity Marketing, the Internet was named by 44 percent of luxury consumers as very or somewhat important, with editorial matter following at 42 percent. Traditional advertising lags behind with newspaper ads (31 percent); television programs and commercials (28 percent); and magazine advertising (24 percent). In 2001, Unity Marketing identified Wal-Mart as the number one jewelry retailer in the U.S. with estimated jewelry and watch sales of $2.3 billion, followed by Zales Corporation, with sales of $2.1 billion. Pam Danziger, president of Unity Marketing, believes that there will be significant generational market shifts over the next decade or two, with baby-boomers and "empty-nesters" creating new demand for luxury items. Despite all the luxury spending, Unity Marketing measured an increase in basic items in February 2003. Retail and food service sales totaled $304.1 billion — up 2.6 percent over the previous year — with the fastest growing retail channel being gasoline, which posted a 24 percent gain over February 2002. Decreased spending was noticed in home furnishings, sporting goods, books and music, cars, consumer electronics, and appliances. Retail sales among non-store retailers — like the Internet — increased 8.4 percent from February 2002, and food and drinking establishments posted a 4.2 percent gain from last year.

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