Saks CEO on Consumer Trends, Future of Luxury Retail

The transcript discusses the behavior of luxury consumers, noting a pullback in spending compared to previous years. It highlights differences between online and in-store shoppers, with online consumers being younger. Current fashion trends, such as the 'Yellowstone effect,' are influencing consumer choices, and businesses must adapt quickly. Discounting remains similar to pre-pandemic times, but inflation and supply chain issues affect costs. Growth strategies focus on market share and leveraging first-party data for personalization, while maintaining a strong online presence and partnerships.

What is a key characteristic of core luxury consumers compared to occasional luxury consumers?

• They integrate luxury into all aspects of their lives.

• They spend less during economic downturns.

• They are more affected by economic cycles.

• They are the first to stop spending in a crisis.

How do online consumers differ from in-store consumers at Saks 5th Ave.?

• They prefer more traditional brands.

• They are generally older.

• They tend to be younger.

• They spend more on average.

What fashion trend is mentioned as having an influence on current consumer preferences?

• Gothic style

• Bohemian chic

• Yellowstone effect

• Minimalism

What is a current trend in consumer behavior regarding promotions?

• Consumers are less interested in promotions.

• Promotions are more effective than before.

• Promotions have no impact on luxury sales.

• Consumers are using promotions more than before.

How has inflation affected the cost of doing business?

• It has had no impact on business costs.

• It has only affected digital marketing costs.

• It has led to increased labor and wholesale prices.

• It has decreased costs significantly.

What is a key component of the growth strategy for the business?

• Expanding physical store locations

• Reducing online presence

• Focusing solely on traditional marketing

• Utilizing first-party data for personalization

How does the business view its role in the market compared to traditional department stores?

• As a discount retailer

• As a multi-branded marketplace

• As a direct-to-consumer brand

• As a traditional department store