Madrid – Despite clear signs of cooling demand for luxury goods that have begun to appear and that it is precisely the US market that appears to be experiencing the greatest impact of the decline and adjustment, a recent study of the purchase market practices and habits prepared by the exclusive Saks Fifth Avenue department store chain suggests that buyers of luxury goods will continue to maintain their demand in the United States during this bag Christmas campaign. A new shopping season marked by parties, dinners, and gifts now officially begins as we approach this next Friday, November 24, the day of the “Black Friday” celebration in 2023.
Continuing to analyze the consumption habits of luxury consumers carried out periodically by the department store chain, whose results are published under the title “Saks Luxury Pulse”, on this occasion we use the collection and analysis of the answers offered by 2,231 respondents, all of them over 18 years of age and residents of the United States, between October 12 and 16, 2023. The data that was subsequently analyzed and studied—and, to finish the preparation of this elaborate report, published last November 16, in which Saks tried to draw the profile of American luxury consumers, thus preparing for their behavior during the strategic and decisive Christmas shopping campaign In a time in which they advanced as the main indicator, despite the whole situation and the lack of motivation that began to enter the consumers, 75 percent of the luxury consumers surveyed planned to spend on equal or more than their purchases in the last campaign. A percentage that not only mentions the sustainable level of spending this group of consumers plans to manage for this shopping season but is stable at the same level as the 76 percent that said they will maintain or increase their level of spending facing the final Christmas campaign in 2022.
“In the midst of a challenging economic climate, we are pleased to see that the luxury consumer is ready to shop and celebrate this Christmas season, where we remain committed to our strategy of becoming the preferred destination for luxury purchases across the spectrum. luxury consumers,” said Marc Metrick, executive director of Saks, in statements published by the same department store company. Despite the strength of this indicator, “we continue to make a superior cautious approach to our outlook for this holiday season,” where the survey results “reinforce our view that the luxury consumer is strong.” “At Saks, we will benefit from luxury consumers going to events and parties, especially because they show that they plan to buy luxury fashion for these occasions,” and “whether they buy for themselves or as gifts, we hope to give them the best in fashion and luxury shopping experiences of all time.”
More spending and more online shopping, despite declining economic prospects
Going to the main key points included in the report, the first thing that Saks points out is that, compared to the trend of a year ago, this time there are +10 percent more customers who will delay their purchases until after Thanksgiving Day, on November 23, 2023, compared to last year. That is, for some buyers who still bet on the online channel, with an increase of +15 percent, up to 64 percent of the total of those surveyed, indicating that they plan mainly or exclusively to make their Christmas purchases through the online channel.
In terms of spending, American luxury consumers plan to spend 54 percent of their holiday spending on gifts and the remaining 46 percent on things for themselves. In this regard, there are differences between members of the millennial generation, who are more likely to give gifts to themselves, with equal spending plans between buying luxury items as gifts and for themselves, compared to respondents from some “Baby Boomer” generations. and the “Silent Generation,” who plan to spend more than they spend on gifts for others.
Regarding the way in which they will spend the holidays, 69 percent of those surveyed claim to have organized a trip on these upcoming dates, -5 percent less than a year ago, with the majority being 83 percent, who said they like to dress up to attend parties and events. A goal in which 84 percent said they plan to change, with 81 percent stating they plan to buy new clothes for the Christmas season.
Continuing to support the “strong” profile that Saks has instilled in the American luxury goods consumer, the market study shows that 57 percent of consumers surveyed plan to maintain their spending levels, or even increase them, within the next three months. A percentage that appears stable compared to that collected in the latest study prepared by Saks is the first to show an increase in spending plans since May 2022, but an estimated decrease in spending of -4 percent is also considered. percentage of consumers with income greater than or equal to 200 thousand dollars; and also a small, but not estimated, percentage of consumers with an income of less than 100 thousand dollars who are willing to wait the necessary time for the thing they want to sell. A late change that comes to focus on the strong commitment to purchase that luxury consumers maintain in the things they want to buy
Despite the strength of the indicators summarized in the study, the “survey also shows a decrease in economic prospects, and the increased concerns about the economy which increased by + 9 percent compared to the previous survey.” , They pointed out from Saks. And “although the majority of respondents (64 percent) still feel optimistic about their personal finances, anxiety has increased by +4 percentage points compared to the previous survey.” Leaving as a result, “among all those surveyed, Millennials are the group with the greatest optimism in the economy (39 percent) and in their personal finances (69 percent).”