Wealthy Americans have slashed spending and are rethinking their priorities, fueling concern among high-end retailers.

High-end stores from Saks Fifth Avenue to Neiman Marcus discounted up to 70 percent before the traditional start of the holiday shopping season. But now, boutiques on Madison Avenue are offering 70 percent to 80 percent off, with Saks Fifth Avenue discounting up to 90 percent.

Single-digit millionaires, who account for 30 percent of luxury retailers' sales and 60 percent of the customer base, pulled back sharply starting in March, when Bear Stearns nearly collapsed and was sold. Those with a net worth above $10 million - who make up about 60 percent of sales and 20 percent of customer base - started scaling back in September. *