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prada pink bag cent over the first three months of the year, "helped by the reconstitution of stocks by watch retailers and strong demand for our brands". Its brands include TAG Heuer and Hublot, while in champagne the group is well represented by names such as Mot Chandon, Dom Perignon, Veuve Cliquot and Krug. In May, the Burberry luxury goods group reported a 15 per cent rise in underlying sales to 749 million for the year to March 31 while profits rose 23 per cent.Across Europe, amid the chaos in financial markets as bail outs had to be organised for Greece and Ireland while Portugal's sovereign bond market came under pressure, luxury retailers were quietly smiling at the fall in the value of the single currency. A new Louis Vuitton shop opened in London's New Bond Street showcasing leather travel luggage, accessories and furniture at prices ranging from 96 to around 45,000Far from this being the Last Hurrah of the well heeled, this pattern of superior growth at the top end has continued and was clearly evident in the latest figures on US retail sales released last week. The International Council of Shopping Centers, which tracks monthly sales data of 32 retailers, showed its index of December same store sales rose 3.1 per cent against a year ago, a smaller increase than Wall Street had expected.However, what was striking was the differing experience between the retailers of luxury goods and the discount or bargain chains. Those selling luxury items clocked up sales growth of 8.1 per cent in December while discount stores reported sales growth of just 1.2 per cent in December, down from 4.9 per cent in November."It could be", suggests Monument Securities economist Stephen Lewis, "that the kinds of people who buy luxury goods are prospering, whereas those who are obliged by their financial circumstances to shop as cheaply as they can are still hurting." The minutes of the 14 December meeting of the Federal Reserve's rate setting Federal Open Markets Committee noted indications that "retail spending by middle and lower income households had risen less than spending by high income households, suggestive of ongoing financial pressures on those of more modest means".Why might this