© Written by Rachael Taylor for The Future Laboratory
The US maintains its position as the world’s biggest luxury market, but disruption from discounters, failing malls and Made in America have changed the sector.
Sales of luxury goods in the US continue to be robust and American consumers, although left divided and uncertain by political turmoil, are also confident, with more than half (43%) of Americans describing their economic situation in 2017 as ‘healthy’.
- The luxury market in the Americas posted sales of £75bn ($95bn, 84bn) in 2017, and is expected to achieve between 3% and 5% growth in 2018 (source: Bain & Co)
- How consumers buy luxury goods is changing, with more than 20% of US malls expected to close by 2020, and an estimated 47% of all online luxury sales made in the Americas in 2017 (sources: McKinsey & Co, Bain & Co)
- The fervour behind Made in America is encouraging reshoring, with 70% of consumers believing it is important to buy American, but price sensitivity is high with 37% unwilling to pay any extra for American-made goods (source: Reuters/Ipsos)
Once the gateway for major retail in the US, the iconic American shopping mall has suffered in recent years with McKinsey & Co reporting that more than a fifth of all US malls are expected to close by 2020. Department stores have fared little better, and falling sales have pushed them into discounting luxury goods to boost sales, with many launching dedicated discount offshoots – Saks OFF 5TH, Neiman Marcus Last Call and Nordstrom Rack, for example…
This story was originally published on The Future Laboratory on August 17th, 2018. Read the full report here. (main image: From Dust to Gold, Palms Casino, Las Vegas)