The rich discover frugality, after a fashion

I cant help but imagine that Mr. Walton is laughing from beyond the grave over the news that in this post-Great Recession era, the filthy rich have discovered that it's smart to be thrifty. Of course, thrift is relative, as a recent Wall Street Journal article documenting the sudden outbreak of frugality in the haute leisure class makes clear. (Subscription required for full article access.)

Those with jobs in high-end retail probably need not fear for their jobs, for sales of luxury goods have rebounded a bit. But they might find their commission checks shrinking, for it seems that the very well-to-do have become comparison shoppers too.

The Journal article relies heavily on research conducted by the Harrison Group, a Waterbury, Conn.-based consumer research firm that conducts an annual "Survey of Affluence and Wealth in America." One of the survey's most significant findings is that "discount" is no longer a dirty word to members of this stratum. The Harrison Group survey, as reported in the Journal, found that the favorite retailers of the affluent - the "stores of the superstars," if you will - are Costco and Target.

Another survey result reported in the article also found that an old canard among luxury-goods purveyors no longer holds: Sixty percent of respondents to a survey conducted by the American Affluence Research Center said that discounts do not affect their opinions of brands. The vice chairman of the Harrison Group's board, Jim Taylor, modeled this attitude when he told the Journal how he spent a week price-shopping for a suit, ultimately settling on a Michael Kors model he bought on Overstock.com for $185. And Taylor made more money this year than last.

So it turns out that Martha Stewart was merely ahead of her time when she licensed her name to a line of housewares and home furnishings at Kmart. Her peers among the rich, whether real or aspirational, have become practical like the rest of us, discovering the virtues of waiting for the sale and shying away from impulse purchases. True, they still have their indulgences, but they are in a sense defensible: they now splurge on things like exotic getaways, one-of-a-kind objects and experiences that create memories. The Great Recession has infected their minds just as it has the rest of us, and whether out of worry or sympathy, they are now showing solidarity with the less well off by saving money in order to live better - the very thing Sam Walton advocated and his store still champions today.

Trivia Time: Near the beginning of this post is a phrase that for many years was the motto of another legendary name in American retail. That company, one of the few survivors of the great wave of department store consolidation that began in the 1980s, is still with us today. Can you name the company and the slogan? Share your answers in the comments.

By Sandy Smith

Sandy Smith is a veteran freelance writer, editor and public relations professional who lives in Philadelphia. Besides blogging for RetailGigs.com, he has written for numerous publications and websites, would be happy to do your resume, and is himself actively seeking career opportunities on Nexxt. Check out his LinkedIn profile and read his other posts on RetailGigsBlog.com.