The luxury retail market began experiencing some of the same challenges last year that the wider retail space has been facing for several years tied to inflation and changing consumer behavior. Reduced consumer spending and an increased focus on value plagued the luxury market, while at the same time, accessible brands like Coach and other smaller chains have captured consumer attention, according to a Placer.ai study.

Visits to luxury retail brands were down 4% for 2024, which contrasts with growth during 2022 and 2023. Placer.ai said this is a clear signal that there has been a shift in consumer demand for luxury brands.

The elasticity of luxury visits waned in 2024, which Placer.ai said could be attributed to changes in demand for specific brands or lower general demand for luxury categories.