Almost one in three U.S. adults have purchased a luxury good in the last month

Despite inflation remaining at relatively high levels, consumers are still purchasing luxury goods, with 30% of adults purchasing at least one luxury item within the last month.

Video Transcript

DAVE BRIGGS: Have you ever seen a Dollar General shopper with a Prada bag? It's not necessarily a fake they picked up on Fifth Avenue in New York City. It might, though, be part of a larger trend of Americans cutting back in order to afford the occasional luxury item. It's what the Wall Street Journal refers to as split brain budget. While the numbers reflect shoppers cutting back on everyday items because of inflation, a January Morning Consult poll shows 30% of Americans have purchased a luxury item in the past month.

SEANA SMITH: I can relate to this. It makes you feel a little bit good, you know? It gives you some of that optimism, something that we all need right now. Dave, the poll also revealing that more than a third of that group spent over $100 on their purchase. When you take a look at some of these numbers, we talk about the fact that the luxury market has held up relatively well when you compare it to some of its other-- some of the other names within the consumer space.

And taking a look at a lot of those estimates out there, Bain estimates that the luxury market's consumer base is going to expand by about 100 million between now and 2030. Right now, it's about 400 million. They're expecting that to get to 500 million by 2030. So more Gen Z, more millennials spending, splurging on those luxury goods. We're already seeing it happen clearly because people need that pick me up these days.

DAVE BRIGGS: I hope you don't smack me with the Prada bag. Is this a female thing? Because I do not have split brain budget. I do not buy luxury items right now.

SEANA SMITH: Really? You spend some on clothes.

DAVE BRIGGS: I do cut back-- no.

SEANA SMITH: No?

DAVE BRIGGS: This is like 10 years old.

SEANA SMITH: You have nice suits.

DAVE BRIGGS: Well, yeah, that's because they go to the cleaners a lot. I mean, I don't purchase luxury items full stop--

SEANA SMITH: Really?

DAVE BRIGGS: --right now.

SEANA SMITH: You gotta ask your wife when you get home.

DAVE BRIGGS: I do cut back, largely speaking. Trying to cut back on the Starbucks a little bit. So, yes or no, you do think this is a male, female thing?

SEANA SMITH: I think it's a male, female thing.

DAVE BRIGGS: That's just my interpretation of it.

SEANA SMITH: Yeah, I just think that you're being smart. You're being frugal right now. Maybe I should take a page out of your book and cut back on my spending a little bit more.

DAVE BRIGGS: You don't have a Prada bag to hit me with, thankfully.

SEANA SMITH: I don't, not right now, at least.