When it comes to spending on luxury clothing and accessories, new research from American Express Business Insights shows surprising pockets of strength, from Gen Y all the way up to seniors. Interestingly, however, the biggest spenders in each demographic -- which it defines as the fashion enthusiasts in the top 5% of purchases -- cut back in the first six months of the year, spending 5% less than in the same period last year.
But the average luxury shopper, by contrast, spent far more -- with men increasing their spending by 126%, and women, 125%, "revealing a compelling catch-up trend," the report notes.
While that trend held true in purchases made in stores, online, and at online discount and flash-sale sites such as Ideeli and Rue La La, the biggest gains for these average shoppers came in store spending, indicating that they are less motivated to buy online, the report says.
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Average female shoppers spent 125% more on fashion purchases made in stores than they did in the prior year, while average men increased their premium fashion purchases by 156%. (By comparison, female enthusiast spending in stores was flat, while male enthusiasts actually reined in spending by 11%.)
And online, typical men spent 41% more, with typical women spending 32% more. The fashionista group spent 21% more on full-price luxury items online.
And while all demographic groups showed gains, the report, which draws on transactions on some 90 million American Express cards in 125 markers, found that: