AUG 2025 UPDATE: The SKALE of Luxury

August has brought a notable shift in Australia’s economic mood. Consumer sentiment has climbed to its highest point in over three years, a signal that households are feeling more confident about the months ahead. Yet, the local luxury retail landscape continues to tell a more nuanced story: some players are struggling with ongoing losses, while others are achieving record-breaking results.

We see this divergence as a reminder that strategy and positioning matter more than ever. Success in luxury today isn’t defined by the broader market, but by how effectively brands read the sentiment, respond to local dynamics, and translate these into stories that resonate.

Australia's Luxury Market Pulse

• Consumer sentiment surges in August to 98.5 (+5.7% jump), its highest level since early 2022. [Westpac-Melbourne Institute index]

• Interest rate cuts are fuelling this optimism as the Reserve Bank has trimmed rates to 3.60%, cumulatively down .75 points since February 2025.

• Luxury Retail slow-down is hitting Australia retail giants differently:

   - David Jones reported a $74 million loss for FY25 closing. This follows a similar $74 million loss in FY24. [AFR]

  - On the contrary, Scentre Group (Westfield owner and operator) reported strong FY25 results with record-high $29 billion in sales from business partners/brands.

• Tourism recovery continues with a 6.3% increase of visitors during the first half of 2025, driven by New Zealand, China and the US. The expectation is that international tourism arrivals will exceed pre-pandemic levels in 2026. [Australian Bureau of Statistics]

What's New in Australia?

• MECCA opened new a flagship store in Melbourne, on Bourke St. It is the largest retail beauty store in the Southern Hemisphere spanning 4,000 sqm over 3 levels.

• Range Rover House returns to Thredbo this month. More than a retreat, this experience celebrates the RR lifestyle with champagne on slopes, fine dining and wellness moments.

• Russh & Omega celebrated the launch of the Aqua Terra timepiece, in Sydney, with an intimate circle of women and host Jessica Gomes.

• Chanel donated a bustier dress from its FW19/20 Haute Couture collection to the National Gallery of Victoria's permanent collection.

• Taste of Champagne ended its 2025 series in Brisbane, after Sydney & Melbourne. 183 cuvées showcased⁠ from over 55 champagne houses.

• Make Up Forever launched its new Artist Colour Crayon with a daytime event, in Sydney, that brought together over 200 media and influencers.

What has SKALE been up to?

• SKALE joined the Porsche 'Women with Drive - She's electric' experience alongside inspiring women in business for a drive down Sydney South to Dove Cote.

• This month on the Skale up Podcast, we look into AI and its impact on the luxury industry. Rather controversial yet unavoidable, how is it shaping the future of luxury? Listen now

  
  

Coming up!

• Sydney design week at Powerhouse museum 12-24 September

• Chatswood Chase luxury retail revamp opening in phases from October 2025 with major players Louis Vuitton, Dior, Bvlgari, Celine, Tiffany & Co...

Until next time!

Warmly,

The SKALE Australia team