Luxury slowdown prompts fears of inventory pile-up over key holiday season

The lower spending comes at the all-important end-of-year season, with November and December accounting for 25% of annual sales

Leading global brands like Hermes, privately owned Chanel and LVMH's Louis Vuitton and Dior maintain a tight grip on retail operations, selling mainly through their own stores which allows them to avoid discounts and fully control their brand image. Pic: Julien M. Hekimian/Getty Images

Early holiday shopping season discounts from high-end fashion retailers like Bergdorf Goodman on New York's Fifth Avenue raised concern that a lacklustre Christmas could lead to inventory gluts – potentially dragging labels into a discounting spiral that would cheapen their image.

The latest US credit card data from Barclays released on Wednesday showed that spending on luxury goods remained negative in November, down 15% year-on-year after a decline of 14% in October.