Article: Luxury is feeling chill of recession ; Some top-end stores in Knightsbridge and Sloane Street have slashed prices before Christmas as even the super-rich rein in their spendingANALYSIS

LUXURY has lost its lustre. As fashionistas become recessionistas and their appetite for [pounds]10,000 python-skin handbags and glitzy watches wanes, companies making and selling top-name brands are anticipating a miserable Christmas.

"The third quarter has been much tougher and things have got even worse in the last month." says Dennis Weber, a luxury goods analyst at Dresdner Kleinwort. "We expect the downward trend to continue into Christmas the key time for these brands with no letup in the new year." Milton Pedraza, chief executive of industry research group the Luxury Institute, concurs."I think we're going to see a lot more pain through the holiday season," he says.

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