Consumer Behavior

High-income consumers still spending on luxury items

Photo by istock.com

July 29, 2022

Inflation, high gas prices and economic turmoil aren't stopping high-income consumers from treating themselves.

A Saks Luxury Pulse survey revealed such consumers continue to treat themselves with fashion items and vacation and are increasingly prioritizing health and wellness in terms of luxury self-care.

"We continue to pay close attention to the evolving macro environment and the insights from the Saks Luxury Pulse reinforce our perspective on the luxury consumer," Marc Metrick, Saks CEO, said in a press release on the survey findings. "The luxury customer remains highly engaged with fashion, and we are confident that our customers will continue to look to Saks when they want to elevate and refresh their everyday style."

Additional findings include:

• 76% of respondents with an income of $200,000 or more plan to purchase the same or even more luxury items in the next three months than they did in the past three months.
• Significantly more Generation X (21%) and Millennial and Generation Z (22%) respondents are planning to purchase more luxury items in the next three months compared to respondents of the Baby Boomer and silent generations (16%).
• When asked where they would spend an extra $500, respondents with an income of $200,000 or more would spend first on vacation and leisure travel (38%), followed by shoes, accessories and handbags (29%).
• 85% of respondents are planning to shop the same amount or more online in the next three months compared to the last three months.
• When splurging, 80% of respondents say it is likely for themselves or a gift for themselves, across generations.
• Roughly two in five respondents (41%) are prioritizing wellness, especially rest and relaxation, nutrition and general self care, more now than they were prior to the pandemic.
• Of those who are prioritizing fitness activities, 62% are interested in shopping for workout wear from luxury retailers.
• Over the last three months, 54% of respondents have been updating, renovating or redecorating their home or decorating their new home.

Respondents are likely to shop for bed and bath products (51%), home decor (50%) and candles and diffusers (42%) in the next three months.

The Saks Luxury Pulse polled 2,137 U.S.-based respondents over age 18 in late May 2022.