The UK’s richest are set to unleash their savings to splash on luxury goods, cars or tech, a report showed, in signs that lower interest rates are boosting demand.
Households with incomes of £50,000 ($65,000) and above are planning to increase their spending on big ticket items at the highest rate since the run-up to the festive shopping season in November, according to a Gfk survey conducted between Feb. 28 and March 13. Its gauge of major purchases intentions among the top earners reached 4 — up 3 points on the month and a dramatic improvement from the -22 recorded in the same period last year.
“Higher-income people are starting to feel the impact of the drop in interest rates on their savings,” said Neil Bellamy, consumer insights director at NIQ GfK. “Higher spenders are feeling generally more positive about spending than they were a year ago.”
The findings could represent an early sign of a brightening mood among consumers. UK households have been pocketing their recent real wage gains as a hedge against uncertainty at home and abroad, much to the detriment of the Labour government’s plans to revive growth. Such savings become less lucrative as interest rates fall.
A resilient labor market is also helping the consumer recovery. Wages are still growing faster than inflation, as Prime Minister Keir Starmer has frequently emphasized in recent weeks, and predicted job losses after Labour’s increase in payroll taxes have so far failed to materialize.
While most households are planning to save less, not everyone is using that cash for cars or furniture. GfK’s major purchases index across the income spectrum remained flat, even as as its indicator of overall savings intentions fell in March by the most since September.
One explanation could be rising bills, which are felt more acutely by people in lower-income groups. Britons are facing a £600 cost increase coming in April when water bills, energy costs and other regulated services go up in price. The poorest households are also bracing for public services belt-tightening, including a £5 billion cut to welfare benefits, in Chancellor of the Exchequer Rachel Reeves’ spring fiscal statement next week.
GfK’s overall confidence gauge improved one point to -19, but remained below levels recorded before the Labour government started its warnings about tax rises in the October budget.
The Bank of England might provide less of a reason to splurge instead of save going forward. Interest-rate setters voted to keep borrowing costs on hold at 4.5% when they met Thursday as they remain wary of global headwinds.
“The current stability is to be welcomed, but it won’t take much to upset the fragile consumer mood,” Bellamy said.
Guess Jeans announced on Monday a new creative partnership with Japanese multi-hyphenate artist Verdy.
Guess Jeans and Nicolai Marciano announce a new creative partnership with Japanese multi-hyphenated artist Verdy. – Guess Jeans
Recognized as a creative pioneer in Japan, Verdy is set to reimagine and enhance the Guess Jeans global universe, bringing a new energy into the brand’s expansion in Japan.
“I’ve had the pleasure to know and be friends with Verdy over the years. I’ve always admired his kindness and ability to bring a fun and playful element to everything he touches,” said chief new business development officer Nicolai Marciano.
“Pursuing a major shift in our strategy in Japan, which is now focused through a Guess Jeans lens, I felt strongly about bringing Verdy in for this exciting new chapter.”
Since 2023, Guess Jeans has cultivated an ongoing relationship with Verdy through a series of activations across Paris and Osaka.
His portfolio includes projects such as Girls Don’t Cry and Wasted Youth, along with his beloved characters Vick and Visty. He has collaborated with brands such as Nike, Human Made, Kenzo, Beats by Dre, McDonald’s, Instagram, and Dover Street Market. Verdy has also held prominent roles as the artistic director for ComplexCon Long Beach 2022, ComplexCon Hong Kong 2024, and Blackpink’s Born Pink tour.
“I’m excited to be working with Guess Jeans and my good friend, Nicolai. I’ve always respected how much passion he and his family have put into the brand. Guess has so much history and culture and I’m happy to be a part of it,” added Verdy.
Most recently, Marciano, who has been instrumental in Guess Jeans’ global expansion, curated key brand activations in 2024, launched flagship stores in Amsterdam and Berlin, and led the brand’s entry into India through a partnership with Tata Unistore.
Looking ahead, Guess Jeans is set to open flagship stores in Tokyo and Los Angeles.
Saks Global has announced that it will maintain operations at the Neiman Marcus Downtown Dallas store through the 2025 holiday season, while working with the City of Dallas on a new vision for the location.
Neiman Marcus downtown Dallas to stay open through 2025 holiday season. – Neiman Marcus
Initially, Saks Global had planned to close the flagship store on Monday after more than a century in downtown Dallas, following a notice from its landlord terminating the lease. However, an effort by city officials and business leaders led to the City of Dallas acquiring the property, preserving the site’s legacy and opening the door for a potential revitalization.
City officials recently convened with Saks Global leadership to discuss a range of potential concepts for the reimagined store. These proposals include a luxury retail experience, a curated art exhibition, a multi-purpose fashion and event center, and an incubator for fashion design and manufacturing.
“We deeply admire the city’s passion and unwavering dedication to Neiman Marcus’ storied legacy in Dallas. The potential reimagination of this iconic shopping destination reinforces Saks Global’s commitment to redefining the luxury shopping experience,” said Marc Metrick, chief executive officer of Saks Global.
“As we explore opportunities for the Downtown store, along with the planned renovation at the NorthPark store, we will evaluate the opportunity to utilize both locations to serve different customer needs in the Dallas market.”
Since its establishment in 1907, Neiman Marcus has been a cornerstone of Dallas, shaping its fashion scene and contributing to the city’s cultural and civic landscape. Saks Global acquired Neiman Marcus Group for a total enterprise value of $2.7 billion, last year.
“We are excited that Saks Global has decided to keep Neiman Marcus open downtown, as we explore the opportunity to unlock the potential to transform downtown into an international beacon and economic engine for fashion – just as the Neiman Marcus founders intended when they opened the store more than 100 years ago,” added Dallas city manager Kimberly Bizor Tolbert.
“We look forward to exploring what‘s on the horizon and are committed to continuing our conversations with the Saks Global team.”
Australia’s Akubra on March 28 opened its first-ever brand store in the city of Brisbane, as the Western-style hatmaker looks to expand its direct-to-consumer footprint across the country.
Inside the Akubra Brisbane store – Courtesy
Located at 162 Edward Street, the new Akubra Brisbane store combines the Kempsey-based fim’s heritage craftsmanship with a contemporary twist, with custom pieces handmade by Akubra’s craftspeople including hand-stitched counters and industrial shelving.
The space also features a tone-on-tone colour palette and sleek industrial fixtures, all the while staying true to the brand’s craftsmanship.
Inside, shoppers will find Akubra’s full collection and hat accessories range, along with personalised services such as hat steaming and shaping by master hatters. The store also hosts the exclusive re-launch of the “Outback Club” hat, in collaboration with country music star, Lee Kernaghan, the brand’s ambassador.
The opening comes two years after Akubra was acquired by Andrew and Nicola Forrest’s private investment group Tattarang in November 2023.
“We are incredibly proud to open this new store in Queensland, preserving and building upon the legacy of Akubra,” said Andrew Forrest.
“Akubra has been ingrained in the fabric of Australian families for generations, and I’m proud that more people will have the opportunity to experience this great Australian-made product. What better way to celebrate the outback in Brisbane than with a reunion of the legendary Lee Kernaghan and one of Australia’s most iconic brands, Akubra.
The Brisbane location serves as the next step in a bigger strategy for the brand, with additional stores planned for this year.
“This marks our first-ever branded store experience, and choosing Queensland for our debut was a natural decision—it’s where our community is strongest,” said Akubra CEO, Natalie Culina.
“We’re deeply attuned to our customers, and following the incredible success of the reopening of our Kempsey flagship store, we saw an opportunity to expand our retail presence in a way that brings the true essence of Akubra to life. This isn’t just a store—it’s an immersive celebration of Australian heritage, craftsmanship, and the iconic handcrafted hats that have become woven into our national identity,” she said.
Entertainment8 years ago