Retailers in countries from the Baltic states to the Ukraine, many of which are reeling from currency devaluations and significant current account deficits, are reporting lower sales. "The crisis is being felt very strongly here and is affecting absolutely every segment," said Irma Marcinkiene, a spokeswoman for Apranga, which runs franchises including Emporio Armani, Ermenegildo Zegna and Hugo Boss in cities like Riga, Latvia; Vilnius, Lithuania, and Tallinn, Estonia.

Apranga reported a 27 percent fall in February turnover, to 7.6 million euros, or $10.3 million at current exchange, compared with the previous year. The figures include results from its mass-market brands such as Zara, Mango and Mexx. In Poland, turnover at Paradise Group, which runs 13 shops including Burberry, Emporio Armani and Kenzo, remained constant at around 10 million euros, or $13.5 million, in 2008, although sales had expanded 20 to 30 percent annually in previous years, said chairman Mariusz Kaczmarczyk.

Eastern Europe is experiencing similar problems as Russia, which early last year was still considered an El Dorado for luxury goods, and enjoyed a boom after the deprivations of the Communist era and the unstable Yeltsin years. But as the financial crisis has taken hold, the closures of a number of boutiques, including Alexander McQueen and Stella McCartney, have been announced.