Saks Global survey shows luxury consumers feeling less optimistic

Luxury consumers in the US are feeling notably less optimistic about the economy, according to the latest Saks Global Luxury Pulse survey, and the intent to spend on luxury “has soften”.

The quarterly survey, which analyses luxury consumers’ attitudes towards spending and the economy, found that luxury consumer optimism about the economy continues to decline, driven by economic uncertainty and market volatility, but that improvements in the overall economy and personal investments would be incentives for luxury consumers to spend more on luxury.

Luxury consumers indicated that the top five drivers of their concern are the general social and political climate, a potential impending recession, personal financial security, stock market volatility and ongoing global conflict. Notably, newly imposed tariffs (at the time of the survey from April 24 to 28) ranked sixth in the luxury consumer’s top concerns.

As a result, luxury consumers are becoming more discerning when spending on luxury, emphasising the importance “of delivering experiences and fashion that inspires,” adds Saks Global, which includes Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman.

Luxury US consumer's intent to spend on luxury “has softened” due to the macroeconomic environment

The survey reveals that 47 percent of luxury consumers are planning to spend the same or more on luxury in the next three months. This represents the lowest level since tracking began in April 2023 and a decline of 11 percentage points compared to the prior survey.

Of those consumers with an income of 200,000 US dollars or more, 48 percent said they plan to spend the same or more on luxury, the sharpest decline in spending intentions compared to other income groups, with a decrease of 15 percentage points compared to both the prior survey and the same time last year.

Respondents also added that alongside an improvement in the economy, factors that would drive consumer spending include an enticing sale or promotional event, an increase in income, and an unexpected special occasion.

Emily Essner, president and chief commercial officer at Saks Global, said in a statement: “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.

“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-personalised shopping experiences. We are bringing this to life through our vision, The Art of You, delivering data-driven recommendations to foster meaningful customer relationships that drive brand loyalty for years to come.”