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The latest Saks Luxury Pulse survey of luxury consumers, fielded in late July, showed the first increase in luxury spending plans since the survey began tracking the metric in May 2022.
The survey showed that 58% of luxury consumers plan to spend the same or more on luxury in the next three months, an increase from 53% in the prior survey in late April. Among respondents with an income of $200,000 or more, 64% plan to spend the same or more on luxury in the next three months, a significant increase from 57% in the prior survey.
In a statement, Marc Metrick, CEO of Saks, saw the uptick as “an indication that core luxury consumers are starting to turn the corner. Although this core luxury consumer is typically the first to rebound from times of economic uncertainty, we remain committed to building meaningful relationships with the full continuum of luxury shoppers, especially those who are likely to become more loyal over time.”
The findings come as Burberry, Chanel, and LVMH have all indicated that luxury spending in the U.S. is more sluggish as the post-pandemic surge tapers off amid rising inflation and the end of pandemic stimulus payments.
In an update on the luxury space in June, Bain & Company said luxury shopping in the U.S. is slowing down due to economic uncertainties and the end of COVID-19 relief funding. Bain’s research found wealthier customers “are holding up, yet partially shifting their spending abroad as price differentials widen,” while more aspirational customers are spending less.
Bain partner Federica Levato told Reuters, “There is an overall slowdown mostly driven by the aspiration side of the customer and more entry prices, so categories like streetwear and sneakers are a bit underperforming as we speak.”
In a recent column for Business of Fashion, Luca Solca, head of luxury goods research at Bernstein, said the luxury industry’s slowdown in the U.S. reflects that “consumers are sobering up from the post-pandemic euphoria and luxury spending growth will undoubtedly moderate and return to its cyclical pattern.”
However, he believes luxury has become a bigger growth opportunity post-pandemic as luxury brands have become better at addressing different consumer segments, creating limited-edition products, and stoking steady demand with VIP events. Additionally, social media has made luxury style more “universal.” Solca explains, “Everyone wants to be a star on social media and the way that luxury brands support our idealized images of ourselves fits the zeitgeist perfectly.”