Interesting insight in to economics on the BBC Bristol website:
The priciest item instore is an Alligator Clutch bag, by Kara Ross, at £3,170.
It’s undoubtedly expensive. But there are those who say Harvey Nichols will spread ripples of wealth across Bristol.
And there are those – obviously not featured in the BBC report because with only the two universities it’s hard to come by a real economist in Bristol isn’t it? – who say this is a tsunami of bollocks.
The simple fact is that at least £1,000 of the cost of that bag goes straight across the Atlantic to Kara Ross who’s based in New York not Bristol.
Another £1,000 goes on Harvey Nichols’ overheads – that’s rent to the Bristol Alliance (from Birmingham), admin costs to run the plc based in London, marketing costs (again all based in London) and salaries across the whole group – most of whom are based in London. Then a small percentage – unlikely to be even 5% – goes to some Bristol-based shop assistants.
The remaining £1,000-odd pounds goes directly into the pockets of shareholders who tend to be global corporations.
So by selling a three grand bag about fifty quid will actually be rippling through Bristol if we’re lucky. Big deal.
Meanwhile in London, is that the sound of wealthy shareholders and senior managers rubbing their hands together with glee rippling through the city?