Saks survey reveals consumer spending habits on luxury products

Vincent Perretti

The luxury department store Saks Fifth Avenue Inc. reported that consumers’ attitudes toward spending on luxury items remain strong after releasing findings from an online survey on March 6.

Saks Luxury Pulse is a quarterly survey used to assess consumer spending and trends within the fashion industry.

The survey reported that 62% of respondents plan to spend the same or more on luxury items in the next three months and 72% of respondents are planning a travel vacation. It also said respondents who are specifically from the Generation Z and millennial groups plan to spend more on travel and activities than any other generation, according to the survey, which was conducted between Jan. 13 and Jan. 17.


Additionally, Saks found that social media had the most significant impact on consumers as it was where many shoppers looked for inspiration on luxury items. The most desired shopping services were free alterations and in-store returns.

“Even as consumer spending shifts with the evolving economic environment, we’re pleased to see a sustained interest in luxury,” Saks CEO Marc Metrick said in a statement. “As the largest luxury e-commerce platform in the U.S., it’s our mission to establish strong relationships with the full spectrum of luxury customers and maintain them for years to come.”

Saks will adapt to consumer demand to maintain a strong consumer base. The eagerness to travel is something the company is taking into consideration.

“Luxury apparel and accessories are going to continue to participate in the consumer’s lifestyle as they make that transition, sort of back into the experiential spend,” Metrick told Women’s Wear Daily. “We have always sold luggage, but you might see it more online versus a physical store.”

With economic instability and fears of a recession, consumers who earn low to middle income are cutting back on luxury goods spending. 

Consumers plan to reduce their spending across all retail categories over the next six months, with 53% reducing spending on luxury products, according to Pricewaterhouse Coopers’s Global Consumer Insights Survey.

Regardless of consumers reducing their spending and unfavorable economic conditions, many luxury brands rely on the wealthiest consumers to keep them afloat.

“It’s a very small percentage of our customers that are in that pure luxury play, but they represent a pretty healthy amount of our volume,” Metrick added.

Parent companies of luxury brands are displeased with recent performances, while some are pleased to see growth signals.

“We were disappointed with the performance of our global wholesale business,” John Idol — who is the CEO of Capri Holdings Ltd., the parent company of Michael Kors and Versace — said in press release for its recent earnings report. 

But Louis Vuitton Malletier generated over $86.4 billion in revenue, a 23% increase from last year. In a press release, CEO Bernard Arnault said that the company had an “exceptional appeal” during 2022 despite being “affected by economic and geopolitical challenges,” but he added that it will “remain vigilant due to current uncertainties” this year.“A lot of retailers we’re hearing warn about some choppy times to come,” Yahoo Finance anchor Dave Briggs said. “They think sales could fall around 3% in 2023, so could be a bumpy road. But the way they’re operating, they might just be fine.”