Luxury spending sentiment drops to lowest level since 2023: Saks Luxury Pulse survey
Luxury consumers are growing increasingly cautious with their spending, according to the latest Saks Luxury Pulse survey.
The quarterly survey found a notable decline in optimism among high-end shoppers, with just 28% of respondents expressing confidence in the broader economy, a 13% drop from January 2025 and a 17% decrease compared to April 2024.
Still, affluent consumers remain somewhat more confident in their personal finances. Among those earning $200,000 or more, 67% reported feeling prepared financially.
As a result, the luxury consumer's intent to spend on luxury has softened compared to recent surveys. Only 47% of luxury consumers said they plan to spend the same or more on luxury over the next three months, the lowest figure since Saks began tracking sentiment in April 2023.
Among higher-income respondents, this number dipped even further, with only 48% planning to maintain or increase luxury spending, down 15 percent from both the previous quarter and last year.
'As the expert on the luxury consumer, we know that uncertainty in the macroenvironment impacts their intent to spend on luxury. With that in mind, we believe it's our responsibility as the largest multi-brand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,' said Emily Essner, president and chief commercial officer, Saks Global.
'We also know that the luxury consumer is resilient - they are typically the last in and first out of these moments of uncertainty - and we believe they will embrace luxury shopping as economic conditions improve. With that, we see this as an opportunity to double down on our strategy to inspire customers through hyper-personalized shopping experiences.'
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5 days ago
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Luxury spending sentiment drops to lowest level since 2023: Saks Luxury Pulse survey
Luxury consumers are growing increasingly cautious with their spending, according to the latest Saks Luxury Pulse survey. The quarterly survey found a notable decline in optimism among high-end shoppers, with just 28% of respondents expressing confidence in the broader economy, a 13% drop from January 2025 and a 17% decrease compared to April 2024. Still, affluent consumers remain somewhat more confident in their personal finances. Among those earning $200,000 or more, 67% reported feeling prepared financially. As a result, the luxury consumer's intent to spend on luxury has softened compared to recent surveys. Only 47% of luxury consumers said they plan to spend the same or more on luxury over the next three months, the lowest figure since Saks began tracking sentiment in April 2023. Among higher-income respondents, this number dipped even further, with only 48% planning to maintain or increase luxury spending, down 15 percent from both the previous quarter and last year. 'As the expert on the luxury consumer, we know that uncertainty in the macroenvironment impacts their intent to spend on luxury. With that in mind, we believe it's our responsibility as the largest multi-brand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,' said Emily Essner, president and chief commercial officer, Saks Global. 'We also know that the luxury consumer is resilient - they are typically the last in and first out of these moments of uncertainty - and we believe they will embrace luxury shopping as economic conditions improve. With that, we see this as an opportunity to double down on our strategy to inspire customers through hyper-personalized shopping experiences.'
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6 days ago
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Luxury spending sentiment drops to lowest level since 2023: Saks Luxury Pulse survey
Luxury consumers are growing increasingly cautious with their spending, according to the latest Saks Luxury Pulse survey. The quarterly survey found a notable decline in optimism among high-end shoppers, with just 28% of respondents expressing confidence in the broader economy, a 13% drop from January 2025 and a 17% decrease compared to April 2024. Still, affluent consumers remain somewhat more confident in their personal finances. Among those earning $200,000 or more, 67% reported feeling prepared financially. As a result, the luxury consumer's intent to spend on luxury has softened compared to recent surveys. Only 47% of luxury consumers said they plan to spend the same or more on luxury over the next three months, the lowest figure since Saks began tracking sentiment in April 2023. Among higher-income respondents, this number dipped even further, with only 48% planning to maintain or increase luxury spending, down 15 percent from both the previous quarter and last year. 'As the expert on the luxury consumer, we know that uncertainty in the macroenvironment impacts their intent to spend on luxury. With that in mind, we believe it's our responsibility as the largest multi-brand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,' said Emily Essner, president and chief commercial officer, Saks Global. 'We also know that the luxury consumer is resilient - they are typically the last in and first out of these moments of uncertainty - and we believe they will embrace luxury shopping as economic conditions improve. With that, we see this as an opportunity to double down on our strategy to inspire customers through hyper-personalized shopping experiences.'
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World Retail Congress: Saks Global/Authentic say JV means "luxury on Amazon" will become very natural
The Saks Global and Authentic Brands Group partnership has been a big talking point of late so it was good timing that Authentic's CEO Jamie salter and Saks' executive chairman Richard Baker were on stage together on day two of the World Retail Congress in London this week. They said they believe the Authentic Luxury Group JV could boost margins, take control of luxury away from vendors and towards retail and make the most of the brand strength of Saks to drive global partnerships. Authentic is well known as the acquisitive buyer of brands such as Nautica, Volcom, Aéropostale, Lucky Brand, Nine West, Ted Baker, Juicy Couture and many more. But while it had a presence at the higher-end, its 50/50 joint venture link-up with Saks Global last autumn was key. 'We wanted to get into the luxury space but it's all about distribution,' said Salter. 'When we look at brands, what is really important with us is that they can make the right margin. If you look at the business model today, margin is everything. Getting together with Saks was critical for us. If you are not making low-to-high-60s in the maintained margin it's very difficult.' Baker also commented on the rationale for the partnership, saying that in premium and luxury, there were too many vendors, too much discounting, and not enough margin. "We had to do it, or there would be no industry left in the United States.' With more than $9 billion in GMV, control of over 60% of the US luxury market, and the backing of Amazon, Salter and Baker believe they're creating a next-gen model where retail, data, licensing and media converge. The JV has bold ambitions and Salter said 'the model truly works. But we're not just in retail, we're also in hospitality business, we'll see Saks branded residences going out, which also means people will buy home products for those. We already have projects on the go, and have people in the Middle East and Asia Pacific looking at doing a Saks store, a condo and a hotel'. For now, a key part of the deal is the newly launched Saks store within Amazon — a digital 'walled garden' that preserves brand integrity while giving access to Amazon's mega-sized global audience. Salter said that with Amazon building similar luxury platforms in the UK, Japan, India and the Middle East, within five years 'luxury on Amazon is going to be the most natural thing you ever imagined because they have the most elegant execution and most reach of anyone in the world online'. The link-up between the two also sees them overhauling the Saks business, cutting underperforming brands and prioritising premium partnerships. And they're helped in this process by customer data as they share over 250 million customer profiles across their businesses, offering them up-to-the-minute insight into who's buying what, where, and why. With that weapon to wield, Saks is likely to edit out 500-600 brands out and shift towards 'controlled brands', with a larger margin, aiming at around 20% of sales from these product ranges.
