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New York, NY—Is the recession really over? Are consumers really shopping again? Is luxury really back to stay? These questions and many more are answered in a just-released report from the Rapaport Group, titled “U.S. Market: Where Is It Going?” Among key findings:

• The recession is, indeed, officially over and has been since 2009. Its aftereffects, however, still linger for many shoppers and it has sparked a long-term change in shopping behavior across all income levels.
• The recovery has benefited the affluent most; many middle-class families still are struggling. Luxury stores like Saks and Nordstrom have posted sales increases in recent quarters but mass merchants and discounters like Walmart and JC Penney are seeing flat sales.
• Shoppers at all income levels are choosing more carefully, weighing wants against needs, and living within their means.
• Aspirational luxury shoppers have scaled back significantly. No longer are they willing to go into debt to finance their aspirations. The “buy it now, deal with it later” mindset is gone, both voluntarily and involuntarily owing to new limits on credit.
• Even affluent luxury shoppers are demanding value. Quality, craftsmanship, and distinction still sell, but brands that held fire sales during the darkest days of the recession are having a harder time justifying their price-to-value ratio now.
• Technology has forever changed the retail landscape. The affluent especially have learned to shop the web to save money on high-ticket items, though there are key times when the customer wants the full retail store experience.
• For younger consumers, the lines between real and virtual are blurred—they expect to find all the information they want any time they want it, but also like the safety and security of being able to touch and feel the product.
• Millennials have a taste for luxury even if they don’t presently have the means to buy it. Those interviewed by researchers indicate an attitude of, “when I have the money, I will spend.”
• They may spend, but they are very particular about how. They demand value and will look pursue all avenues to get the best price. They research like crazy, which means retailers need a compelling, interactive, two-clicks-max online presence, as well as QR codes in the store so a shopper can aim a smartphone and get the product information they want on the spot.
• Millennials are marrying later—closer to 30 than the traditional 20—and typically living together first. Being older, they’re likely to have more money for the engagement ring. A carat is often a starting point for this demographic.
• Conversely, they’re also saddled with enormous college debt, at the same time they’re trying to buy a home, a car, and get established. They will hit their stride financially later than previous generations.
• Later marriage also means that the engagement ring is not their first jewelry purchase, as it was in earlier generations. Without having product that appeals to them prior, jewelers may not even get a shot at the ring.
• Personalization is more important than brand names in bridal jewelry for these consumers. It matters that they feel they have some hand in the design of the ring.
• In terms of diamonds, there’s been a contraction in the United States market, but it still is the largest market. It has an entrenched diamond culture that China and India do not yet have, but rapidly rising demand in both those countries will affect global—and, subsequently, U.S.—diamond prices.

The entire 25-page report can be accessed and downloaded in PDF format by clicking here.