Luxury consumers are growing more cautious, which is reflected in the lowered demand for high-end goods as confidence in the economy continues to slip.
The latest Saks Global Luxury Pulse survey found that only 28% of luxury consumers feel optimistic about the economy, a drop of 13 percentage points since January, and 17 points lower than the same time last year. Feelings of calm and preparedness about economic conditions also declined sharply.
The downturn in sentiment is largely driven by growing unease around the broader macroeconomic climate. Top concerns include political instability, fears of a recession, personal financial security, stock market volatility, and ongoing global conflict. Recently imposed tariffs also made the list, ranking just below the top five.
Emily Essner, president & chief commercial officer, Saks Global, said: “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.”
This anxiety is weighing on consumer behaviour, with 47% of respondents saying they plan to spend the same or more on luxury over the next three months, the lowest level since Saks began tracking the data in April 2023. Among wealthier consumers, the pullback in spending intentions was even more pronounced.
At the same time, more luxury consumers are prioritising financial security than in previous surveys, and many say they’d need to see improvements in the broader economy or gains in their investments before increasing luxury spending. Other incentives include strong promotions, unexpected special occasions, or an increase in income.
Still, Saks maintains that the luxury customer remains resilient. While sentiment is clearly cooling, the brand notes that this group tends to be among the first to return once conditions begin to improve.