Luxury consumer confidence falls amid economic uncertainty: Saks

The luxury consumer’s optimism about the economy continues to decline, driven by economic uncertainty and market volatility. As a result, luxury consumers are becoming more discerning when spending on luxury, emphasising the importance of delivering experiences and fashion that inspires, according to a survey by Saks Global, the largest multi-brand luxury retailer in the world.

The Saks Global Luxury Pulse survey highlights evolving luxury consumer sentiment towards the macroeconomic environment and its impact on luxury spending. The study found that the overall decline in sentiment is driven by increasing uncertainty around the macroeconomic environment. 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) ranked sixth in the luxury consumer’s top concerns.

“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,” said Emily Essner, president & chief commercial officer, Saks Global.

“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,” She continued.

The Saks Global Luxury Pulse reveals a marked decline in economic confidence among luxury consumers. Only 28 per cent feel optimistic about the economy, down 13 points from January 2025 and 17 points from April 2024. Feelings of calm (32 per cent) and preparedness (36 per cent) have also dropped significantly. However, most remain confident in their personal finances—especially those earning $200k or more, with 67 per cent feeling prepared. Financial security has risen as a top priority amid ongoing uncertainty.

Among all respondents, the luxury consumer’s intent to spend on luxury has softened compared to recent surveys, with 47 per cent 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.

The luxury consumer’s willingness to increase their luxury spending plans based on both macroeconomic and lifestyle factors demonstrates their resilience, reinforcing the company’s perspective that the luxury consumer is typically the last in and first out of moments of uncertainty.