Luxury shopping is becoming more accessible, with consumers well beyond the top 1 per cent of spenders driving demand even as global economic uncertainty slows overall luxury sales, according to a new Visa Business and Economic Insights report.
The study found that participation in luxury retail spending declined across major global centres such as Dubai, London, Paris, Singapore and New York in the first half of 2025. It marks the first downturn in the sector since the 2008 financial crisis, excluding the temporary collapse during the pandemic.
Despite the slowdown, Visa’s analysis of domestic cardholder data revealed that luxury retail is no longer dominated by the ultra-wealthy. Consumers in the top 5, 10 and even 20 per cent of spenders continue to engage with premium brands, showing that luxury shopping has evolved into a more inclusive market.
“Luxury is now less about exclusivity of access and more about aspiration and experience,” said Mohamed Bardastani, Principal Economist for CEMEA at Visa.
The report attributed the shift to generational change and digital retail growth. Around 300 million new Gen Z and Gen Alpha consumers are expected to enter the global luxury market over the next five years, supported by rising incomes, wealth transfers and technological innovation. Visa economists expect this to fuel long-term growth even as short-term demand remains uneven.
Luxury e-commerce has also expanded rapidly. Although in-store shopping still dominates, online and blended “phygital” spending (where digital tools enhance the boutique experience) has gained ground. Between 2019 and 2024, the share of online and blended luxury spending rose by more than 15 percentage points in cities such as London, New York and Dubai.
The report highlighted December as the peak month for global luxury spending, driven by the holiday season and year-end bonuses.
While economic headwinds have tempered momentum, Visa concluded that the luxury industry’s foundation remains strong, powered by a wider and younger base of aspirational shoppers redefining what “luxury” means in 2025 and beyond.
Follow us on
