Scarf it up!

Considering the economy is in, well a rough patch at the current moment it is understandable that clothing companies are concerned. However, conventional wisdom on the luxury market states that luxury brands such as Louis Vuitton, Prada, and other well known and loved brands are more recession-resistant than other segments of the fashion industry. Mostly due to the rich still being rich while the rest of us suffer, but that's another subject. This week Hermès will test this wisdom when the high end 171-year-old French brand opens a 2,500-square-foot space in San Diego’s Fashion Valley retail center.

The store will debut during what many believe to be the worst time to expand a business. The San Diego store, however, is only one of four that are scheduled to open this coming year. One will open in Las Vegas in January 2009, one will open in Denver in March 2009, and a Hermès boutique for men will open in New York.

The decision to open new stores has been a rather difficult one for the company to make. The store openings come at a time when Hermès has been severely affected by the weak economy. On Nov. 6, Hermès of Paris went from a solid 10 percent sales increase from the previous year to a 9 percent to 10 percent increase in sales. However, the American division is still apparently doing well which is why they have decided to continue with their expansion plan.

The San Diego store is said to be reminiscent of Hermès’ Parisian flagship store. It will have mosaic stone floors, French cherry wood and a lot of windows to allow for natural sunlight to come in the store. Let's hope for Hermès’ sake the economy picks back up and their investment will pay off.

Picture (Flagship store in Paris) from: http://www.pursepage.com/wp-content/uploads/2006/11/hermes_paris_large.jpg