MARCH 2026: The SKALE of Luxury

Apr 7
2 min read

Updated: Apr 8

Despite a resilient start to 2026, escalating geopolitical tensions in the Middle East are beginning to weigh on market dynamics globally, with implications for revenue, profitability and overall sentiment in Australia. Rising pressure on energy prices, inflation and borrowing costs is adding further strain on both households and businesses.

April will be a pivotal month, as the evolution of these tensions continues to shape short- and mid-term economic conditions.

On the brand front, March remained anchored in sport and culture, with the Australian Grand Prix in Melbourne once again acting as a key platform for premium and lifestyle engagement.

Australia's Luxury Market Pulse

Inflation remained stable in February at 3.7% although above the target. It is estimated to spike significantly in March, following geopolitical tensions. [Australian Bureau of Statistics, Roy Morgan]

Consumer confidence continues to drop in March as expected in a global war context and reaches a 5-year low. at 75.3 in March (-3.3pts on January and a dreadful -10pts on March 2025). Uncertainty and economic worries are palpable. [Roy Morgan ANZ]

Retail spending eased slightly in January compared to last year. Discretionary spend was down 0.5% year-on-year, while spend on essential goods and services was down 1.1%. The homewares & furnishing category continues to hold strong (+15% vs. LY) and online market places also grew 2.9%. However, clothing stores continue to decline (-7%). [Experian]

Store Openings

Network updates are in order during the month of March, with renovations starting and ending.

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.