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As sales growth of luxury goods slows in established markets, brands will expand in emerging regions like the Middle East. There, rising wealth among a young population that鈥檚 bringing their spending home will boost demand.

Department store websites and apps lead. Respondents to our survey were more likely to have made an online purchase than an offline one at department stores, off-price retailers, and brand-owned stores鈥攖he top three types of retailers for personal luxury goods

Luxury spending in the US is returning to historical norms: Shoppers are increasingly focused on saving money and travel.

This indicates that retail marketers rely on cheap activations, primarily social media posts, while auto deals are pricier. Last year, auto dealers gifted star football players luxury vehicles in exchange for using their likeness, according to The Athletic. Brands can find student-athletes to partner with in multiple ways.

Whether brands are aligning their product with comfort food, launching fragrances, or prioritizing scent in their retail spaces, marketers are embracing multisensory experiences as another way to stand out in the digital noise.

Costco鈥檚 fiscal Q4 earnings report, with total revenues of $78.94 billion, offers a glimpse into shifting consumer priorities: its shoppers are now favoring essentials, opting for groceries and gasoline, while luxury and other discretionary items have taken a backseat.

I think we would see, for example, luxury brands, electric vehicle manufacturers, or even household appliance companies hold off on spending, at least in the short term, while they see how the economy starts shaping up.". Connected TV (CTV) could see spending reductions exceeding 12% under a heavy tariff scenario鈥攖he highest among digital channels.

Some stability will finally emerge in Asia-Pacific鈥檚 retail sector after several years of disruption from the pandemic. But the market and businesses will be unsettled, beset by a new wave of technological disruption from AI, the metaverse, and more.

US Retail Industry Ad Spending 2024 (蘑菇AV subscription required). Methodology: Data is from a February 2025 Civicscience survey. 4,000+ US adults ages 18+ were surveyed online during February 3-4, 2025. The survey was weighted by the U.S. Census.

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The news: The 104% tariff on Chinese-made goods鈥攚hich jumped to 125% Wednesday鈥攕parked a retail frenzy for iPhones that鈥檚 driving customers to buy the latest smartphones before prices spike up to 43% if Apple decides to pass off tariff costs to consumers. Apple stores nationwide saw weekend traffic rivaling the holiday shopping season, with many shoppers asking if prices would rise, per Bloomberg.

Macy鈥檚, Neiman Marcus, Hudson鈥檚 Bay rethink their strategies as department store sales fall: Tactics include using data science to predict trends and improve pricing strategy, doubling down on luxury, and maximizing store appeal with experiential concepts.

At the same time, the prospect of future economic pain appears to be motivating shoppers to indulge in affordable luxuries like high-end perfumes and other beauty as well as health products.

鈥淟ittle treat鈥� culture has taken over TikTok. The hashtag #littletreat has amassed 41.4 million views, and video after video shows users justifying their small purchases because they 鈥渄eserve a little treat.鈥� But little treats can add up. So Gen Z and millennial consumers are using rewards apps to pay for their little luxuries, according to Wes Schroll, CEO of the rewards app Fetch.

Consumers continue to spend big on restaurants, gym memberships: Despite inflationary pressures, shoppers are willing to invest in affordable luxuries and wellness.

Our take: Offering more exclusive and luxury-filled experiences can help Amex attract new young cardholders. Amex boasted a record 13 million new card acquisitions in 2024, and millennials and Gen Zers made up more than half of these accounts. They also accounted for one-third of Amex鈥檚 total balances last year.

Major retailers like Zara and H&M have responded to the increased interest in secondhand goods by expanding their pre-owned offerings, while Walmart鈥檚 partnership with Rebag has brought luxury resale to a broader audience. More brands are expected to enter the space, as 76% of retail executives without a resale program say they鈥檙e considering or planning one鈥攁 2 percentage-point increase YoY.

If that prediction holds true, that could mean tough days ahead for many fast food chains, particularly since the value wars have done little to change consumers鈥� perception that fast food is a luxury.

eBay鈥檚 consignment business is its latest play for luxury shoppers: The marketplace is betting on luxury to turn its fortunes around.

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Testimonials could also bring new marketers into the creator space, said influencer marketing consultant Lindsey Gamble, who used luxury brands as an example. 鈥淢aybe you don't want the short-form video made on a phone and want the high-quality product shot, but then you incorporate a comment from a creator that has a name in the fashion industry,鈥� said Gamble.

Its latest release, La Cuv茅e Vintage 2022, retails for $119 a bottle. Why it matters: While LVMH鈥檚 Mo毛t Hennessy brand dominates the Champagne market with acclaimed labels such as Dom P茅rignon, Krug, and Veuve Clicquot, the company鈥檚 investment in French Bloom marks its first foray into the nonalcoholic drinks space. There's a good reason for LVMH to expand into that space.