Affluent U.S. consumers are growing more cautious about the economy, according to the latest Saks Global Luxury Pulse<\/strong>. The quarterly survey, conducted in late April, found that optimism among luxury shoppers has reached its lowest point in over a year, driven by fears of recession, trade volatility, and global instability.<\/p>\n\n\n\n Only 28% of respondents expressed optimism about the economy \u2014 down 13 percentage points since January and 17 points from April 2024. Just 32% felt calm about economic conditions, a sharp drop from previous surveys. Despite this, 67% of high-income respondents (earning $200,000 or more) said they still feel financially prepared on a personal level.<\/p>\n\n\n\n Only 47% of surveyed consumers said they plan to spend the same or more on luxury in the next three months. This marks the lowest intent to spend since Saks began tracking the data in April 2023, and reflects an 11-point decline from the previous quarter. Consumers cited macroeconomic uncertainty and tariff-related volatility as primary concerns.<\/p>\n\n\n\n Emily Essner, president and chief commercial officer at Saks Global, noted, \u201cLuxury spending is more sensitive to the broader economic mood than to personal finances.\u201d She added that affluent shoppers are \u201clast in, first out\u201d when adjusting spending, meaning they cut back later and rebound earlier than the general population.<\/p>\n\n\n\n In response to changing consumer sentiment, Saks is emphasizing product longevity and quality. \u201cWe\u2019re reinforcing that many of our items are investment pieces \u2014 not just seasonal trends,\u201d said Essner. The company is also doubling down on personalization and selective promotions rather than widespread markdowns.<\/p>\n\n\n\n While consumers respond to discounts, Saks plans to reduce promotional activity overall, maintaining a premium positioning. \u201cOur strategy is to decrease promotionality and be more targeted,\u201d said Essner, pointing to a long-term shift in retail tactics.<\/p>\n\n\n\n Despite negative sentiment in April, Essner suggested that attitudes may have improved since the survey. Saks will reassess trends in its summer Luxury Pulse. Planning, however, remains difficult. \u201cIt\u2019s definitely hard to think six to eight months down the road,\u201d she said.<\/p>\n\n\n\n There is no current indication that fashion spending is being sacrificed for travel or entertainment, according to Saks. The company believes understanding luxury consumer psychology is essential to navigating macroeconomic headwinds and sustaining growth.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":"Luxury spending sentiment drops to record low<\/h2>\n\n\n\n
Saks pivots to value, personalization, and \u2018investment\u2019 products<\/h2>\n\n\n\n
Outlook remains fluid as economic sentiment evolves<\/h2>\n\n\n\n