In-person store sales still dominate in luxury goods sector – study

Although digital channels are more personalised, many affluent consumers still value the human touch. Just over half (52%) of high-income shoppers prefer shopping in-store for fashion – up from 36% in 2023 – highlighting renewed appreciation for tactile experiences that digital platforms cannot fully replicate. 

While e-commerce surges, luxury brands are reimagining stores as cultural destinations that inspire, connect and reward loyalty through interactive experiences. 

Lifestyle drives luxury evolution 

Luxury spending has shifted from personal goods towards experience-led categories, reflecting deeper changes in consumer values. Experimental luxury showed resilience, with luxury travel and hospitality markets growing 8% in 2025. 

This momentum highlights a broader consumer pivot, where wellness, lifestyle and emotional connection are becoming new status symbols.  

Euromonitor notes that the ‘third space’ – environments beyond home and work – has evolved into dynamic hubs and wellness real estate that can blend lifestyle, retail and social experiences. These spaces offer exclusivity, community and personal fulfilment, prompting brands to expand into new verticals. 

Ageing affluence fuels demand 

The 60-plus age group is rapidly growing in affluence and influence, driven by increased life expectancy, improved healthcare and a generational shift in lifestyle priorities. This cohort is redefining luxury – seeking indulgence and sophistication but also empowerment and simplicity. 

Their spending favours luxury offerings that enhance quality of life – from wellness travel, spa-led hospitality and age-inclusive luxury skin care to home innovations, real estate and luxury retirement villages. 

Luxury growth in sub-Saharan Africa 

Euromonitor reports that South Africa (15%) stands out in the leading markets for growth alongside, Sweden (12%), India (10%), and the United Arab Emirates (9%).  

Sub-Saharan Africa presents new opportunities for luxury brands as affluence rises and consumer tastes shift. South Africa is seeing notable growth in luxury goods, positioning the region as a key player in the global luxury market. 

In 2025, physical stores remained the dominant channel for luxury goods in South Africa, driven by affluent consumers’ preference for immersive, high-touch shopping experiences. The expansion of luxury retail spaces, including curated concept stores featuring brands like Dolce & Gabbana, Louis Vuitton, and Gucci, elevated the in-store experience. 

Multi-brand stores and premium venues enhanced accessibility and service, while retailers focused on personalised consultations and exclusive previews to deepen consumer engagement. 

“For brands, this is a prime moment to rethink premium experiences through the lens of longevity and conscious indulgence, designing services that cater to a generation with time, resources and a growing appetite for elevated living. The luxury sector’s growth will depend on its ability to adapt to these evolving consumer opportunities,” Roberts states.