Tiffany & Co. now has bags to match its little blue boxes.

The jeweler is launching an expansive collection of handbags, ranging from clutches to totes to satchels, in a dozen of its U.S. stores on Sept. 1. Every piece bears an element of Tiffany's signature robin's egg blue, whether on a clasp, in a lining or all over a dyed-crocodile purse. Prices for women's handbags start at $395 for a small suede tote and rocket up to $17,500 for a large crocodile handbag.

Handbags have enjoyed sparkling sales in recent years and are in some ways easier for a retailer to move: Women are more likely to splurge on bags for themselves than on jewelry. 'Unlike jewelry, which sometimes feels extravagant, handbags always serve a purpose,' says John Long, a retail strategist with consultancy Kurt Salmon Associates.

Tiffany also markets itself as a place where men can buy gifts for the women in their lives. Purses offer luxury cachet without the symbolic weight of the little blue box.

But Tiffany is joining a crowded field of retailers in the handbag arena. Several apparel makers have recently added upscale bags at a time when luxury sales in general are struggling to recover. And Tiffany continues to walk a thin line as it tries to drive sales through accessibly priced goods while maintaining its uptown image.

Tiffany's move comes as the market for upscale handbags is beginning to show signs of post-recessionary life. Dollar sales of handbags that cost $200 or more rose 15% in the 12 months that ended in June from the year-earlier period, according to market-research firm NPD Group. Even so, retailers have grown less confident about consumers' mood throughout the year.

Elizabeth Holmes