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Talk of the bay: Holy, Mercedes! Affluent feeling the pinch, too

By Times Staff
Published October 30, 2007

The affluent have been the holdouts to the retail spending slowdown. Until now. Luxury retailers Nordstrom, Coach Inc. and Saks Fifth Avenue cautioned last week that their fall business had softened and exhibited signs of staying that way through the holidays. Unity Marketing Inc., which compiles a Luxury Spending Index, said affluent shoppers' spending on luxury goods dropped 21 percent in the third quarter, the steepest decline since 2004, and the index hit its lowest point since 2005. Only the "super-affluent," those earning $150,000 or more, maintained their spending pace on material goods, suggesting retailers who became dependent on the trading-up trend should buckle up. Unity economist Thomas Bodenberg cited reasons: oil prices, investor fallout from the subprime mortgage crisis and a "lack of confidence in the political process" from both major parties and the executive and legislative branches to resolve much. "The outlook for the Christmas season is clouded at best," he said. Saks said sales gains in stores open more than a year remained robust at 7 percent, but were down from 9.5 percent earlier this year.

Verizon steps up with technology

If you are a FiOS customer, you can now search for your favorite show or movie onscreen by using a cell-phone-style text entry, a virtual keyboard or a simple scroll wheel. On Monday, Verizon said it is launching its interactive media guide in Hillsborough, Pinellas, Pasco, Sarasota and Manatee counties. Viewers will be able to choose content from TV listings, video-on-demand, digital video recorders or personal music and photos with a few clicks on the remote. Over the next year, the company plans to expand the offerings on the guide, allowing viewers to manage games, podcasts and Internet video.

AT&T plans $35M outlay on wireless

Separately on the wireless front, AT&T Inc. said Monday it's investing $33-million in west Florida's wireless network and another $2-million in an advertising campaign. As part of the investment, AT&T is activating dozens of new cell sites. Areas where coverage is being improved include: northwest of downtown Tampa, near West Waters Avenue and Sheldon Road; southern Plant City, along State Road 39; and East Park Road, along County Road 579 between Tampa and Zephyrhills; and southeastern Hillsborough County, near the town of Boyette.

.tampabay.com

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[Last modified October 29, 2007, 23:30:46]