There’s good news for retailers in the latest Saks Luxury Pulse, with the quarterly research revealing a decided shift in the financial confidence of affluent consumers.
Saks reports that 58% of luxury consumers plan to spend the same or more on luxury products in the coming months, up from 53% in the last survey. This marks the first increase since May of last year, when Saks launched the study.
About 68% consumers are optimistic about their financial situation, roughly the same as last quarter. And while a slight majority, 55%, say they are still worried about the overall economy, that marks a five percentage point decline.
The higher their income, the more upbeat people are. Those with a household income of $200,000 or more are even more likely to have plans to buy more, at about 64%. That, too, represents a significant increase from last quarter, when 57% said they were planning to spend the same or more.
“We are pleased to see the first increase in over a year in purchase intent across the luxury consumer continuum, an indication that core luxury consumers are starting to turn the corner,” says Marc Metrick, chief executive officer of Saks, in the report.
The survey also notes that these people are going places, planning the kind of trips and vacations that often spur luxury shopping.
Overall, 74% have either booked a trip or are planning to. Among the $200,000-plus group, that rises to 81%. And for those with travel plans, 72% intend to buy luxury items in preparation for their adventures.
There’s even a sense of rising optimism in those planning to cut back on luxury purchases, with 54% saying the right sale or promotion would change their minds. And only 35% of that group say they are waiting for signs that the overall economy is improving, a decline from 43% last quarter.
The study polled more than 1,800 U.S. adult luxury shoppers.