In luxury, confidence has always been translated into currency. Confidence in heritage. Confidence in exclusivity. Confidence in craftsmanship. And, most crucially, confidence in the consumer’s ability and willingness to spend. But as the global macroeconomic and political landscape grows ever more precarious, the high-spending clientele that once upon a time appeared insulated from financial disruption, is showing signs of hesitation. The latest Saks Global Luxury Pulse report offers a revealing snapshot: luxury’s most loyal consumers are blinking, and global luxury demand is losing momentum.
Indulgence, with reservations
According to the Saks Global Luxury Pulse survey of affluent shoppers in the U.S., published in June 2025, luxury consumer sentiment has clearly weakened. Just 47% of respondents said they plan to spend the same or more on luxury over the next three months—an 11-point drop from the previous survey, signaling a tangible shift in consumer intent.
This hesitation is mirrored in broader economic sentiment. Only 36% of luxury consumers now say they feel prepared when thinking about the economy—down 13 points from the prior survey and 20 points compared to the same period last year. Interestingly enough, among responders earning $200,000 or more, preparedness is slightly higher at 41%, compared to all income groups.
At the same time, despite a decrease in optimism about the economy, the majority of luxury consumers remain optimistic about their personal finances.
That macro pressure, however, is shaping luxury priorities. Financial security rose 3 percentage points as a top priority since the last survey, indicating that even well-heeled consumers are recalibrating what matters most in uncertain times.
“As the expert on the luxury consumer, we know that uncertainty in the macroenvironment impacts their intent to spend on luxury,” stated Emily Essner, President & Chief Commercial Officer of Saks Global, in the press release accompanying the survey. She also emphasized the resilience of the luxury shopper: “They are typically the last in and first out of these moments of uncertainty—and we believe they will embrace luxury shopping as economic conditions improve.”
Wars, rates, and tariffs collide
The shift in luxury sentiment doesn’t exist in a vacuum. Inflation remains sticky in key markets, interest rates show no signs of retreat, and whispers of a looming recession still haunt financial headlines. Meanwhile, global instability has escalated beyond mere “tensions.” From the ongoing war in Ukraine to the conflict between Israel and Iran, political volatility has become a persistent backdrop for wealth holders across borders.
For the global elite—those with cross-continental portfolios, multiple residences, and exposure to currency fluctuations—this directly influences decisions around liquidity, asset allocation, and yes, whether or not that next luxury purchase feels justifiable.
Adding another layer of complexity: trade policy. The renewed weaponization of tariffs, especially in U.S.–China relations and growing EU-U.S. trade friction, has reintroduced uncertainty to global luxury supply chains. For brands that rely on global sourcing and for consumers in tariff-sensitive markets, the possibility of added costs or disrupted flow is weighing on both sentiment and strategy.
In this environment, luxury consumption is becoming more divided. For the top 1%, discretionary spending remains largely unshaken, but for the broader affluent class, whose wealth is tied to startup equity, stock portfolios, or property valuations, caution is taking hold.
Where does this all lead? Will—after all is said and done—global luxury demand return to its previous shape, or will it emerge redefined, guided more by alignment with values? And will opulence, at last, be unseated by security, sustainability, or even a sharpened moral compass?
Luxury’s new priorities
That said, there is a twist in the luxury narrative. According to the Saks Global survey, while overall spending may be slowing, luxury consumers are becoming more discerning, placing greater emphasis on experiences and fashion that inspire.
Nowadays, shoppers are narrowing their scope and focusing on what matters most: a growing appetite for pieces that last, timeless design, strong resale value, and items grounded in provenance. The age of logo-driven showmanship is giving way to a renewed appreciation for local craftsmanship and emotional relevance.
That same logic is lifting another part of the luxury ecosystem: experience. High-end travel, bespoke retreats, wellness residencies, and one-of-a-kind immersive cultural events are proving to be remarkably resilient. In uncertain times, the allure of meaning, memory-making, and escape is stronger than any passing fad.
Even for cautious spenders, the desire to feel something memorable remains non-negotiable, turning luxury into something more personal, more soulful, and far more enduring.
When high-end must listen, not just shine
The global luxury demand is not in crisis. It is, however, amid a recalibration. The modern luxury consumer is not necessarily spending less because they are poorer, but because they are more deliberate. The notion of value, once taboo in luxury boardrooms, is becoming a central pillar of strategy.
At the same time, macroeconomic anxiety and political uncertainty are undeniably dictating when, why and how luxury consumers choose to spend. What once felt (and in many cases was) like impulse or indulgence, now is filtered through values, timing and intention. Luxury brands may very well listen: to remain relevant and, ultimately, desirable, they must go beyond shine—they must embrace meaning.
