Luxury consumer optimism surges, spending behavior remains cautious: Saks report

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

The survey, fielded in January, found that optimism regarding the economy grew to 48%, up 12% from the previous survey conducted in October 2023. Similarly, 57% of luxury consumers said they feel calm about the economic landscape, reflecting a 7% increase from the prior survey.

In terms of personal finances, 70% of luxury consumers report feeling both optimistic and calm, representing respective increases of 6% and 3% compared to the prior survey. Notably, respondents with an income of $200k or more exhibit the most significant surge in optimism, with a 14% increase regarding the economy and an 8% increase regarding personal finances. Still, Millennial respondents emerge as the most optimistic cohort regarding personal finances. 

“At Saks, we believe that luxury is a long game, and in order to win 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 sentiment-based business, so we’re pleased to see that attitudes toward the economy are improving, particularly as consumers have grown used to the dynamic macro environment. With that, we anticipate these positive sentiments will translate to an improvement in luxury spending in the back 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, consistent with previous trends. Notably, however, this figure represents a decline from the 62% reported during the same period last year.

While luxury consumers express a preference for personalized shopping experiences, with 70% finding value in personalization when shopping online for luxury fashion, only 24% of respondents indicate a willingness to pay full price rather than await promotional offers.

Furthermore, the survey highlights an increasing inclination towards travel planning among luxury consumers, with 72% either initiating or finalizing travel plans. Of those planning trips, a significant majority (70%) intend to indulge in luxury purchases in anticipation of their travels.

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