Luxury Shoppers Balked at Price Hikes

As brands pivot strategies, many consumers have opted out of purchases due to recent price increases.

Updated on Sept. 22, 2026 in Spending

Isometric editorial illustration showing designer sunglasses and a perfume bottle on a marble surface, representing a shift in luxury retail strategy. — Luxury brands are recalibrating strategies as a Boston Consulting Group survey indicates 70% of shoppers have rejected purchases due to recent price increases. AI Illustration. Upload story photo >

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Data from a Boston Consulting Group survey shows that 70% of luxury shoppers have passed on buying an item because of price hikes. These consumer habits are shaping how global fashion houses adjust their strategies this year.

Why it matters

Luxury brands are recalibrating their approach after a three-year market malaise, with many focusing on lower-priced items like eyewear and fragrance to stay relevant. Understanding these shifts helps consumers navigate a market that is increasingly prioritizing AI integration and targeted regional outreach.

A survey of 12,000 consumers revealed that 70% have avoided luxury purchases due to recent price hikes. Meanwhile, the industry projects 8% growth in North American luxury sales for 2026, outpacing the 2% to 5% growth expected globally.

The players

Boston Consulting Group

A global management firm that provides research and strategic consulting services to luxury corporations.

Burberry

A luxury fashion brand that is implementing a multi-pillar transformation strategy to appeal to U.S. consumers.

Kering

A luxury group focused on improving operational efficiency and decision-making through AI and technology.

The details

Luxury firms are addressing cooling demand by implementing transformation strategies that emphasize client engagement and technology. Brands are utilizing AI tools, which 90% of their customers now use weekly, to streamline operations and better target aspirational shoppers. By shifting focus toward cultural relevance and more accessible product categories, companies aim to sustain sales in an environment where consumers are increasingly price-sensitive.

September 17, 2026: Boston Consulting Group hosted a Luxury Executive Roundtable in Manhattan.
2026: Global luxury sales growth is projected to reach 2 to 5 percent.

Money Landscape

The luxury sector is currently attempting to emerge from a three-year market malaise characterized by cooling consumer sentiment. Recent brand shifts follow a period of intense pricing pressure that has changed how households approach luxury spending.

If you are a luxury shopper, you may notice brands pushing more accessible categories like fragrance or eyewear to capture budget-conscious demand. Review your discretionary spending category to see if recent price changes are influencing your personal shopping decisions.

The takeaway

While luxury brands are pivoting toward new digital tools and lower-cost products, price remains a significant barrier for the majority of shoppers. It is a prudent time to cross-reference your discretionary budget against luxury items you have considered passing on due to recent cost increases.