Luxury Consumer Optimism Rises, Spending Behavior Remains Cautious: Saks Report

Luxury consumers are optimistic about the economy and their personal finances, but intentions to spend on luxury goods in the near term remain moderate, according to the latest Saks Luxury Pulse survey.

The survey, conducted in January, found that optimism about the economy grew to 48%, up 12% from the previous survey conducted in October 2023. Similarly, 57% of luxury consumers said they They feel calm about the economic outlook, which reflects 7%. increase compared to the previous survey.

In terms of personal finances, 70% of luxury consumers report feeling optimistic and calm, representing respective increases of 6% and 3% compared to the previous survey. In particular, respondents with an income of $200,000 or more show the most significant increase in optimism, with a 14% increase when it comes to the economy and an 8% increase when it comes to personal finances. Still, Millennial respondents emerge as the most optimistic group regarding personal finances.

“At Saks, we believe that luxury is a long game, and to win over the luxury consumer over time, we must maintain our deep understanding of their changing behaviors, while offering them relevant and personalized shopping experiences,” said Marc Metrick, CEO. , Saks.

“Luxury is a business based on feelings, so we are pleased to see that attitudes towards the economy are improving, particularly as consumers have become accustomed to the dynamic macroeconomic environment. With that, we anticipate that these positive sentiments will translate into an improvement in luxury spending in the second half of 2024.”

Despite growing economic optimism, the survey reveals that 57% of luxury consumers plan to maintain or decrease their spending on luxury goods in the next three months, in line with previous trends. However, it is worth noting that this figure represents a decrease from the 62% reported during the same period last year.

While luxury consumers express a preference for personalized shopping experiences (70% find value in personalization when purchasing luxury fashion online), only 24% of respondents indicate they are willing to pay full price rather than wait. promotional offers.

Additionally, the survey highlights a growing inclination toward travel planning among luxury consumers, with 72% starting or ending travel plans. Of those planning trips, a significant majority (70%) intend to make luxury purchases before their trips.

Emily Essner, chief marketing officer at Saks, added: “Our mission to understand the luxury consumer through Saks Luxury Pulse is closely tied to our personalization strategy. Both are geared toward the common goal of delivering highly relevant, personalized recommendations and shopping experiences that resonate with our customers, based on their preferences and feelings. “The latest survey results demonstrate that our strategy is working and that the luxury consumer is finding value in their experience, and we look forward to continuing to advance our personalization efforts for their benefit.”