Saks Says Consumer Interest in Luxury Remains

Saks released the findings of the Saks Luxury Pulse Survey—and consuemrs are still splurging, but spending is shifting. Consumers are prioritizing savings and travel, in addition to wardrobe updates, the report says.

Fielded in late April and early May, the latest survey found that respondents feel concerned (60%) about the overall economy, yet optimistic (67%) about their personal financial situation.

more than half of respondents (53%) are planning to spend the same or more on luxury in the next three months compared to the previous three months, 

Marc Metrick, CEO, Saks, comments, “In line with our strategy and expectations for the year, the luxury consumer is responding to the economic environment and tapering their spending on luxury items."

He continues, "We are pleased to see that even as they reprioritize their spending, consumers still have an appetite for luxury goods. Given the luxury consumer’s history of resilience, we anticipate their spending will be reinvigorated when the economic environment begins to improve.”

Luxury Spending Will Continue, Especially for Millennials

Here are a few highlights from the Saks Luxury Pulse Survey:

• 57% of respondents with an income of $200K or more plan to spend the same or more on luxury in the next three months, down from 68% in the January survey


• 57% of Millennial respondents plan to spend the same or more on luxury in the next three months, down from 64% in the January survey


• When asked what would motivate them to spend more on luxury, 43% of respondents who plan to spend less said they would need to see improvement in the overall economy, while 54% said that they would be enticed by a sale or promotional event, reinforcing an ongoing interest in shopping for luxury.


• 82% of respondents plan to prioritize saving the same or more in the next three months compared to the last three months, and 71% plan to spend the same or more on travel


• 77% of respondents are planning to or have already booked a trip in the near future and, of those, 74% said they plan to buy luxury items in preparation for their trips

Spending on Luxury Fashion

Beauty and fashion often go hand-in-hand—here's what respondents said about spending on luxury fashion.

Nearly half of respondents (49%) feel that their wardrobe is outdated and needs a refresh, and many continue to embrace the quiet luxury trend and invest in timeless and comfortable pieces.

• More Millennial respondents (40%) feel they need to update their wardrobe because their personal style has changed, compared to less Gen X (35%) and Baby Boomer and Silent Gen respondents (24%).
•  
• Millennial respondents’ top priorities when getting dressed and shopping over the next few months are items that are timeless (87%), comfortable (87%) and simple and understated (78%), rather than on trend (44%).
• 60% of respondents have been aware of the quiet luxury trend, and of those, 86% said they already integrate it into their wardrobe.
•  
• Of those planning to integrate quiet luxury into their wardrobe, 35% cited their desire to be more sustainable as their inspiration. Given the timelessness and quality of quiet luxury pieces, many look to this trend as a way to invest in fashion that will last over time.

Emily Essner, chief marketing officer, Saks, added, “As we continue to fulfill our role in serving as a source of fashion inspiration, insights from the Saks Luxury Pulse help us optimize our content...Our customers have indicated that they have a desire to update their wardrobes, which serves as an opportunity for us to provide them with more fashion discovery as their personal style continues to evolve.”

Photos via Instagram @Saks and @TheSaksMan