AS iconic IT bags from the likes of Louis Vuitton, Prada, Mulberry, Christian Dior, Burberry and Dolce & Gabanna jostle for attention, you would be forgiven for assuming that you'd walked into a Thistle Street designer boutique, or were spoilt for choice in the Harvey Nichols accessories department.
The doors are never closed and the tills ring throughout the day as Capital shopper after shopper falls in love with the designer arm candy.
"On Monday I sold 12 designer handbags," smiles boutique owner, Janice Wardlaw. "There might be a credit
crunch, but women in the Capital still know how to treat themselves."
From the exclusive and limited edition, the covetable designer classics to the quirky and vintage, it is fast becoming the haunt of Edinburgh's style savvy, with everyone from trend-aware university students, 20 and 30-something professionals to ladies who lunch not only perusing but snapping up a find.
But rather than a showy department store or grand boutique, this destination is Xchange Handbags on Montagu Terrace. And all the bags in question are at least half the recommended retail price – all being new unwanted gifts or gently worn.
As the country is in the grip of an economic downturn, a new emerging trend of women is rising from the credit crunch flames. Known as recessionistas – or frugalistas – this new breed of woman appears super stylish yet are always able to buy a round of drinks and appear to be wearing a new, bang on trend outfit every time they're out. They've just changed the way they shop.
"She is the type of girl who is in the shops snapping up diffusion lines and catwalk-inspired ensembles at high street prices," says Edinburgh stylist, Laura Wilton. "Designer lines at the likes of H&M, New Look, Gap and Marks & Spencer are all a recessionista's dream and things like falling stock prices and rising bills aren't getting in the way of her wardrobe.
"The shop-till-you-drop era is at a close and extravagance has been replaced with austerity. You just have to look at the city's retailers to see discount signs everywhere – even Topshop is aware of it as it announced earlier this year that it was launching its own clothes-swapping events for customers. It's even planning a series of workshops to encourage style junkies to turn their junk into jewellery."
The tide has finally turned in favour of being less extravagant and the trend is to have absolutely no shame in it. From knowing the best charity shops and where to get the best discounts to proudly donning frugal fashion, it's all about living like the boom during the bust.
"We opened in September and in less than two months we've had to double the shop size," admits Janice, of Xchange Handbags. "I didn't expect it to take off so quickly but demand has meant that we had to expand.
"The credit crunch has helped us, but so too has the trend to be able to get something high-end on the cheap."
A look around the Capital's TK Maxx stores reveal hordes of shoppers rummaging through the rails in search of designer bargains. Pucci, Chloe, John Smedley, Lyle & Scott, Osprey and Moschino are just some of the labels on offer, with up to 60 per cent off.
The high street stores who have collaborated with fashion trail-blazers to create capsule collections are similarly doing a roaring trade.
And the Capital has recently played host to a series of sample sales from big designer names, with cashmere queen Belinda Robertson holding a sale of this season's collections until 8pm tonight (Thursday], at her Dundas Street store. Cashmere starts at just £20.
"It's definitely become an accepted thing to do," admits 27-year-old PR executive, Susan Wilson from Trinity. "Before, bargains you'd come by from the likes of McArthur Glen, TK Maxx or a charity shop were kept quiet and, when asked, you'd be vague about it. Now, it's cool to proudly declare just how little it cost. It's like the Primark effect round two.
"My mortgage has shot up, as have my electricity bills. And the weekly grocery shop has just kept creeping up. So I've had to cut corners. I do less loads of washing, switch off unused lights and always make sure standby is not on. I have cut down on takeaway coffees and stopped buying so much meat. I no longer drive to work, but walk instead. And instead of my weekend splurges on the high street, I shop more carefully and look for investment pieces that give me a boost – but on the cheap."
Lyndsey Hartland, 32, a full-time mum from Colinton, agrees. "I've started attending bitch and switch parties and I love vintage shops where I can find fantastic pieces and pair them with high street buys. Right now, it's the only way to go and the likes of Armstrongs, Hermand Brown and Godiva in the Grassmarket are popular haunts for all that is unique yet expensive-looking."
Which is why Xchange Handbags is selling dozens of bags every day. And why the store now offer designer shoes and accessories.
"I've just got in a limited edition Louis Vuitton bag which has the price tag on it at £655," says Janice. "It's perfect and still has its dust bag. There's also a new Dolce & Gabanna bag from Cruise which costs £600. I've got classic Gucci bags, Paul Smith ones and in terms of brand new shoes Prada, Jimmy Choo and Kurt Geiger are just some of the collection.
"People either donate their unwanted bags and I sell them on their behalf, with the profits going to local charities. Or I sell them and we split the money. I recently had one woman who came in with 34 handbags and many had not been used. And I had another girl who sent in her boyfriend to hand in a stack of Christian Dior and Louis Vuitton bags – she wanted to donate them."
With retail therapy as the antidote to a woman's problems, shopping continues to be a guilty pleasure – even when the balance is red. All the recessionista has done is change how she shops.
Janice agrees. "There are definitely recessionistas out there who come in, have a long look and are happy to get a designer bag at a fraction of the cost. And why shouldn't they? After all, we are in the midst of a credit crunch."
