M&S Becomes New Luxury Fashion Destination
Luxury consumers are shifting from premium labels to more affordable high‑street brands such as M&S, driven by tighter budgets and the appeal of resale markets. The trend reflects broader changes in the fashion industry, including a cooling luxury sector and the rise of pre‑owned platforms.
By Felo News Desk · Published
In recent years, a growing number of shoppers who once splurged on luxury labels have begun to favour high‑street retailers that offer a designer feel at a fraction of the price. The shift is most visible in the United Kingdom, where consumers are turning to brands like Marks & Spencer (M&S) and Sézane for pieces that once would have been reserved for the elite. The trend is reshaping the luxury market and signalling a broader change in consumer behaviour.
From Aspirational to Practical: The Changing Shopper
Emma, a 38‑year‑old marketing director from London, illustrates the new consumer profile. Five years ago she bought a pair of Prada shoes or a Chloé blouse once a quarter, treating each purchase as an investment. Today she no longer buys new designer items; instead she shops second‑hand on platforms such as Vestiaire Collective, or purchases from high‑end high‑street stores like Toteme and Cos. Emma’s story mirrors a wider shift among the “squeezed middle” – professionals who have enough income to indulge but are increasingly cautious about discretionary spending.
Financial analysts point to a steep decline in the market value of luxury conglomerate LVMH as evidence of this trend. The French multinational, which owns Dior and Louis Vuitton, saw its market capitalisation drop from €426 billion in 2023 to €213 billion in 2026. While the company’s fashion and leather goods sales grew by 1 % in the second quarter of 2026, the drop in share price reflects a broader cooling of demand among consumers who were previously considered aspirational.
Macro‑Economic Pressures and the Rise of Resale
Several macro‑economic factors have contributed to the shift. Rising interest rates, job‑security concerns and a slowdown in China’s domestic market have all tightened disposable income. According to McKinsey’s 2025 State of Luxury Fashion report, the personal luxury goods industry grew 5 % per year between 2019 and 2023 – a rate two percentage points above GDP growth. However, many buyers were financially stretched, and the resulting pressure has caused a faster cooling of demand than expected.
The resale market has responded to these pressures by offering a more sustainable and affordable alternative. Platforms such as Vinted, eBay, Depop and Vestiaire Collective now dominate the UK’s discretionary spend cut, with 55 % of cost‑conscious shoppers avoiding new purchases since 2023. “Customers are increasingly turning to resale, vintage and pre‑owned, where their money can go much further,” says Hanushka Toni, founder of Sellier.
High‑Street Brands Step Up the Game
High‑street retailers have seized the opportunity to capture the budget‑conscious luxury buyer. M&S, for example, is set to debut on the London Fashion Week schedule this September, signalling its ambition to compete with traditional luxury houses. The brand’s recent return to profit growth, following a cyber‑incident that disrupted sales last year, has positioned it to offer a designer experience at a lower price point.
Other high‑street labels are following suit. H&M‑owned & Other Stories announced the arrival of chief creative officer Jonathan Saunders in 2025, bringing a high‑fashion aesthetic to its collections. The brand’s most expensive items – such as a £299 unstructured braided leather bag – are now within reach for shoppers who previously would have considered them luxury purchases.
What This Means for the Future of Luxury Fashion
The shift toward high‑street and resale markets suggests that the luxury sector will need to adapt. Brands that once relied on the assumption that their customer base was financially insulated are now facing a more discerning and price‑sensitive audience. Some luxury houses are exploring new pricing strategies, while others are expanding into pre‑owned and vintage channels to maintain relevance.
Meanwhile, consumers are becoming more intentional about where they spend. The rise of sustainable fashion, the allure of rare or discontinued pieces, and the desire for a designer experience at a lower cost are all driving the trend. As the market continues to evolve, the line between luxury and high‑street is blurring, and the next wave of fashion shoppers will likely be defined by value, sustainability and authenticity rather than brand name alone.
In short, the luxury market is no longer a one‑way street. The rise of M&S and other high‑street brands, coupled with the booming resale sector, indicates a new era where style and affordability go hand in hand.
Key facts
- Luxury consumers are moving from high‑price labels to affordable high‑street brands like M&S.
- The decline in LVMH’s share price highlights a cooling luxury market driven by tighter budgets.
- Resale platforms are becoming the go‑to for cost‑conscious shoppers, offering sustainability and affordability.
- High‑street retailers are stepping up with designer‑style collections and lower price points.
- The trend forces luxury brands to rethink pricing, sustainability and customer engagement strategies.
Why it matters
The shift from premium labels to high‑street and resale options reflects a broader change in consumer priorities, impacting how luxury brands approach pricing, sustainability and market positioning.
Frequently asked questions
Why are luxury shoppers buying from high‑street brands?
Tighter budgets, economic uncertainty and the appeal of sustainable, affordable style are driving shoppers to high‑street retailers that offer a designer experience at a lower price.
How has the resale market impacted luxury brands?
Resale platforms provide an alternative for consumers seeking high‑quality pieces at lower prices, prompting luxury houses to explore pre‑owned channels and adjust pricing strategies.
What does M&S’s debut at London Fashion Week mean?
It signals M&S’s ambition to compete with traditional luxury houses by offering designer‑style collections and a high‑fashion experience to a broader audience.
Sources
- [1] standard.co.uk — originally reported as “Why luxury fashion fans are choosing M&S over Vuitton”
