What Uggs Say About The Economy

Most luxury shoe brands are privately held and keep their numbers close to the vest, but high-end department store numbers provide a reliable glimpse of the plot twist in this sartorial drama. High-end retailers Nordstrom, Neiman Marcus, and Saks all had double-digit drops in December, and analysts aren't cheerful about this year, either. According to consulting firm Bain & Co., the global market for luxury goods could fall as much as 7 percent. Aside from spending less, shoppers are choosing differently when they indulge. What are they buying? In a word, Uggs. If it seemed like those sheepskin baked potatoes were on everyone's feet last year, that's because they pretty much were, with sales growing a whopping 57 percent. Another winner in the battle for the hearts and heels of consumers was Merrell, a brand that specializes in glorified clogs. What's going on? It's as if we ditched Mr. Big for Seth Rogen.

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