Luxury fashion sales drop by up to 25% in Sofia, Bulgaria

The 2 major luxury fashion retailers which control the majority of luxury brands in franchise for Bulgaria have confirmed to CPP Management Consultants a drop in sales for the first quarter 2009 of up to 25%. Particularly affected are the womens fashion brands.
Bulgarias luxury market seems to be more affected than Serbia, Romania and Poland, the international crisis having a dramatic effect on consumption and purchasing power. Luxury hotels in Sofia have dropped rack rates by 40% and they report an average 20% fall in occupancy rates. Luxury car sales have also dropped by 50%, especially on the top luxury brands level. It remains to be seen how the upcoming summer holiday season will be able to boost the economy in general, and indirectly the luxury market.