FEBRUARY 2026: The SKALE of Luxury

Mar 1
2 min read

Following the summer break, February signals a dynamic start to the year for Australia’s luxury retail landscape, marked by a wave of flagship openings across Sydney and a renewed cadence of brand activations.

The recent holiday trading period has further highlighted a widening divide across industry players. With consumer confidence now at its lowest level since 2023 and interest rates continuing to weigh on spending, the second quarter is likely to bring ongoing contrasts in performance and added operational pressure for many businesses.

Australia's Luxury Market Pulse

Inflation remained stable in January at 3.8% although above the target. Consequently, the RBA announced early February an increase to the official cash rate from 3.60% to 3.85%, the first increase since November 2023. [Australian Bureau of Statistics, Experian]

Consumer confidence hits lowest rates since 2023, falling further down to 78.7 (-3.9pts on January). Real estate continuous price increase and mortgage hardship are fuelling national concerns among consumers. [Roy Morgan ANZ]

Luxury Retail has seen record-high turnover during the holidays for players already well established in the market (Cartier, Hermes...) while the gap continues to widen with others. More than ever, consumers look for relevance and connections, redefining the codes of the industry.

Retail discretionary spending was up during the holiday season compared to the previous year. Consumers spent much more on homewares & furnishing (+18%). However, declines were seen across restaurant dining (-3%) and clothing stores (-6%). [Experian]