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Over the past five years, the luxury retail business has been reliant on price hikes that far outpace inflation to compensate for stagnant sales growth. A Chanel quilted bag costs 70% more than it did back in 2009, while a classic Louis Vuitton Speedy handbag is around 30% more expensive, The Wall Street Journal reported.With the likes of Kate Spade and Coach hot on their heels, and offering alluring lower priced alternatives, do these price hikes make sense?