Report from Saks: Luxury Consumers’ Optimism Soars

Luxury consumers are exceptionally optimistic despite the downward trend in the economy and their financial capabilities.

However, according to the latest survey from Saks Luxury Pulse – a branch of Saks Fifth Avenue, the upscale department store chain in the United States, intentions to spend on luxury goods in the near future remain weak.

The survey conducted in January showed that optimism about the economy had increased to 48%, up 12% from the previous survey conducted in October 2023. Similarly, 57% of luxury consumers reported feeling calm about the economic situation, reflecting a 7% increase from the previous survey.

Regarding personal finances, 70% of luxury consumers reported feeling optimistic and calm, representing increases of 6% and 3% respectively from previous surveys. Notably, survey participants with incomes of $200,000 or more showed the highest levels of optimism, with a 14% increase in economic sentiment and an 8% increase in personal finances. However, survey participants from the Millennial generation were the most optimistic about personal finances.

“At Saks, we believe luxury is a long-term game, and to attract luxury consumers over time, we must maintain a deep understanding of their evolving shopping behaviors while providing them with appropriate and personalized shopping experiences,” said Marc Metrick, CEO of Saks.

“Luxury goods are emotion-driven products, so we are pleased to see confidence in the improving economy, especially as consumers are accustomed to a dynamic macroeconomic environment. Along with this, we anticipate these positive sentiments will lead to an improvement in luxury spending in the second half of 2024.”

Despite the increasing optimism about the economy, the survey found that 57% of luxury consumers plan to maintain or reduce spending on luxury items in the next three months. This figure notably represents a decrease from the reported 62% in the same period last year.

While luxury consumers express a preference for personalized shopping experiences, with 70% prioritizing personalized experiences when shopping for luxury fashion online, only 24% of survey participants said they were willing to pay full price rather than wait for promotions.

Furthermore, the survey highlights a growing trend in travel planning among luxury consumers, with 72% of participants indicating they intend to or have already planned trips. In these plans, the majority (70%) intend to shop for luxury items to prepare for their trips.

Emily Essner, Head of Marketing at Saks, added: “Our mission – understanding luxury consumers through the Saks Luxury Pulse survey – closely aligns with our personalization strategy. Both aim to provide relevant and personalized shopping proposals and experiences that resonate with customers, based on their preferences and emotions. The detailed information in the latest survey demonstrates that our strategy is effective and luxury consumers are finding value in their experiences. Additionally, we aim to further enhance our efforts to personalize shopping experiences at Saks for the benefit of our customers.”