What: The Saks Luxury Pulse survey reveals that despite luxury consumers feeling more optimistic about the economy and their finances, increased spending on luxury goods is expected to be delayed until the latter half of the year.

Why it is important: This survey highlights a crucial insight for the luxury retail sector, showing that positive economic sentiment does not immediately translate into higher luxury spending. It underscores the emotional nature of luxury purchases and the need for retailers to adjust strategies based on evolving consumer attitudes and behaviours.

The latest Saks Luxury Pulse survey, involving 3,211 U.S. luxury consumers, indicates a notable increase in optimism regarding personal finances and the economy, yet suggests that this optimism will not immediately result in increased luxury spending. According to Emily Essner, Saks' CMO, luxury consumers are significantly more optimistic, with personal finance optimism up by 6 percentage points and economic optimism up by 12 points from the previous survey. However, the emotional aspect of luxury purchasing means there's a lag before this optimism translates into actual spending.

Despite the overall positive sentiment, Saks reported an 8% decrease in gross merchandising value (GMV) for its fourth quarter, with flat traffic and a slight downturn in conversions on saks.com, though performance remains above pre-COVID-19 levels. The survey also found increased optimism and spending intentions among higher-income households and millennials, indicating a segmented response to economic conditions. Key motivators for increased luxury spending in the near term included sales/promotions and income increases, with travel remaining a significant interest among luxury consumers. Marc Metrick, Saks' CEO, emphasised the importance of adapting to consumer behaviour changes and offering personalised shopping experiences to capture long-term luxury market growth, anticipating an improvement in luxury spending in the second half of 2024 based on the survey's insights.

Saks Survey: consumer optimism not lifting luxury sales