From the prices I see in high-street shops, I assume they do very well indeed.. Another perspective is that they're struggling and therefore need to charge more, but I do not believe this is the case, as that would only further accelerate their demise.
No, I think people appreciate the higher price, it (the price itself) provides a quality experience. The constraint of physically going somewhere and then paying a premium is a value in and of itself. It's both a status signal, and can provide a boost to self-confidence.
That doesn't mean down market knockoffs for the non-wealthy will, and that's most retail.