Salaries in luxury retail, especially in fashion and accessories, have dropped by 15% in Q1 of 2009 in Romania, Bulgaria, Hungary and Czech Republic. Salaries in Ukraine and Russia have seen a drop of up to 20% in the same period.
Luxury retail professionals of Romanian and Russian origins have been returning home especially from Middle East, bringing them in direct competitions to those employed already. The drops are also due to the closure of retail locations and declining sales.
Luxury industries such as hotels are also experiencing lay offs, the Q1 figure was up to 5%, especially at middle level management. Major players in these industries have also frozen the level of salaries, at least for the duration of 2009.
Serbia, Poland, Croatia, Slovakia and Slovenia have not yet registered cuts, especially considering the smaller size of the luxury markets.
While all these new developments in the HR of luxury have a negative impact on the professionals, they will likely have a positive impact on new developments – luxury brands which decide to expand during unfolding crisis.
CPP Management Consultants LLC
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