It's for fake-boho girls with rich parents. It's pretty common for spoiled kids to be really excited about how not-materialistic they are, which is pretty easy when you don't -actually- have to worry about running out of money or not having healthcare or being screwed in some other way. A fine way of showing how non materialistic you are is wearing a super cute $400 outfit that looks retro-woodstocky for when you and your friends fly down for burning man.
Occasionally, I will buy something there if it is for a special occasion. It's not worth it for everyone, because there clothes is so delicate, I just happen to be a fan of hand washing my clothes, so it's that little extra bit of care for such a delicate piece. I do find there clothes expensive, but I find it to also be unique, so it will be a splurge item that I get a decent use out of. But I honestly wouldn't care if this store shut down.
People with money to throw around. I see the same clothing at Target and I don't even buy it there. I don't see the point of spending 100+ on a shirt. Tbh I don't even see why it is worth that much. Do they donate proceeds to charity or something?