Saks Luxury Pulse Survey Reveals Positive Holiday Forecast

A Cause for Optimism? The Luxury Sector’s Holiday Outlook

As the holiday season approaches, the luxury sector finds itself at a crossroads. Despite a challenging year marked by declining revenues for some of the biggest names in luxury, recent findings from the Saks Luxury Pulse survey suggest a glimmer of hope. The survey, set to be released soon, indicates that luxury consumers are gearing up for a more robust holiday shopping season compared to last year.

Spending Trends Among Luxury Consumers

According to the Saks Luxury Pulse, a significant 82 percent of luxury consumers celebrating the holidays plan to spend at least the same amount on holiday shopping as they did the previous year. This marks a notable increase from last year, where only 75 percent expressed similar intentions. However, it’s important to note that 18 percent of luxury consumers anticipate spending less this year, reflecting a cautious approach amidst economic uncertainties.

Interestingly, among those who do not plan to partake in holiday celebrations, 65 percent indicated they would spend the same or more on luxury items in the upcoming quarter compared to the previous three months. This figure represents an 8 percentage point increase from the same period last year, suggesting that while some consumers may be scaling back on holiday festivities, their appetite for luxury goods remains strong.

A Shift in Consumer Behavior

Emily Essner, Saks’ chief marketing officer, noted a surprising enthusiasm among luxury consumers for the upcoming holiday season. This positive sentiment appears to be driven by an improved outlook on the macro economy and personal finances. In fact, 70 percent of those surveyed plan to start their holiday shopping before Thanksgiving, a 14 percentage point increase from last year. This shift can be attributed to the shorter holiday shopping season this year, which features five fewer days between Thanksgiving and Christmas.

Demographically, Millennials are expected to begin their holiday shopping slightly later than Generation X, Baby Boomers, and the Silent Generation. This generational difference highlights the varying shopping habits and priorities among different age groups.

Travel and Experiences Take Center Stage

The survey also revealed a growing interest in travel during the holiday season, with over half of respondents indicating plans to travel. More than a third of those surveyed plan to travel more than they did last year, signaling a desire for experiences over material goods. This trend aligns with the broader consumer shift towards valuing experiences, such as theater tickets, travel, or spa days, alongside traditional gift-giving.

Insights from the Saks Luxury Pulse

The Saks Luxury Pulse is a quarterly online survey that gauges luxury consumers’ attitudes toward shopping, spending, and the economy. The latest survey was conducted among 1,196 U.S.-based luxury consumers over the age of 18, providing valuable insights into current trends. While the survey projects a positive outlook for the holiday season, it’s essential to consider the broader context of the luxury market.

Despite the optimism reflected in the survey, major luxury brands have reported disappointing results in recent months. LVMH Moët Hennessy Louis Vuitton, for instance, experienced a 4.4 percent drop in revenues in the third quarter, attributing this decline to lower growth in Japan and a downturn in sales to Chinese nationals. Similarly, Compagnie Financière Richemont and Kering reported declines in sales, underscoring the challenges facing the luxury sector.

The Importance of Online Shopping

The Saks Luxury Pulse also highlighted a significant preference for online shopping among luxury consumers, with 64 percent indicating they would shop online for the holidays. This trend is particularly pronounced among Millennials, with 70 percent preferring online shopping. However, when it comes to purchasing home décor and fine jewelry, luxury consumers still favor in-person shopping, emphasizing the need for a seamless cross-channel experience.

Gift Preferences and Self-Purchasing Trends

When it comes to gift preferences, women are inclined towards beauty products and hobby-related items, while men lean towards electronics, beverages, and shoes. Interestingly, both genders express a desire for experiences, indicating a shift in what constitutes a meaningful gift.

The survey also found that 61 percent of luxury consumers plan to self-purchase gifts, with clothing topping their priority list. Additionally, 58 percent intend to buy luxury items for themselves, while 42 percent plan to give luxury items as gifts. This trend highlights the growing importance of self-gifting in the luxury market.

Holiday Spirit and Celebrations

The Saks Luxury Pulse revealed that 66 percent of luxury consumers plan to embrace the holiday spirit, with 24 percent intending to do so even more than last year. Notably, 77 percent of luxury consumers plan to attend holiday parties or gatherings, reflecting a desire to celebrate and connect with others during this festive season. Among those planning to go out, 62 percent indicated they would dress up, with many intending to elevate their holiday attire compared to previous years.

Conclusion: A Mixed Bag for Luxury

While the Saks Luxury Pulse presents an optimistic outlook for the holiday season, it is essential to recognize the mixed signals coming from the luxury market. Consumers appear ready to spend and celebrate, but the broader economic landscape remains uncertain. As luxury brands navigate these challenges, the ability to adapt to changing consumer preferences and behaviors will be crucial in determining their success this holiday season and beyond.