APRIL 2026: The SKALE of Luxury

May 5
2 min read

Updated: May 31

Ongoing conflict in the Middle East is adding to global uncertainty, with early signals now emerging across Australian risk indicators. While the full impact is still unfolding, further economic effects are likely if tensions continue. Consumer confidence has fallen sharply, reflecting pressure from higher interest rates (cash rate at 4.1%), increased fuel prices (+33% since February), and persistent cost-of-living pressures.

Retail activity remains measured, with brands prioritising consolidation, client engagement and strategic investments over rapid expansion.

Spending is not disappearing, it is becoming more selective, intentional and experience-driven.

Australia's Luxury Market Pulse

Inflation to 4.6% in March 2026, up from 3.7% in February, marking the highest level since the post-pandemic recovery period in September 2023. [Australian Bureau of Statistics]

Consumer confidence in April recorded its lowest level in over 50 years, averaging 63.4 for the month (-20pts vs April 2025). [Roy Morgan ANZ]

Retail discretionary spend was 7.3% higher in March compared to last year, driven by entertainment spending. After adjusting for inflation, fair to note consumers have cut back on fuel spend (-3.4% YoY) and increased use of public transport options (+18.3% YoY). [Experian]

Store Openings

All eyes on Northern Sydney with new mall, Chatswood Chase, unveiling a dedicated luxury precinct late April.

This new environment brings together the largest collection of luxury outside of the Sydney CBD. Most luxury brands opened simultaneously on 30th April, as part of the first phase launch of the luxury floor.

Brand activations

Melbourne takes centre stage in early March with the Australian F1 Grand Prix, followed by a busy month of fashion activations, both public and private.