Shares in ASX-listed online fashion business Cettire, which sells brands including Dolce & Gabbana and Christian Louboutin, are up by close to 54 per cent this year. The business told investors this month that sales for the four months to April had increased by 122 per cent, to $141.3 million.

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“Revenue growth acceleration in April was underpinned by further growth in repeat customer revenue and an acceleration in growth in active customers,” chief executive Dean Mintz said.

Back to bricks and mortar

High-end brands, which pride themselves on the experience shoppers have in their physical stores, are also making their mark in the commercial property market. Competition for luxury retail sites has kicked up a notch as companies strive to expand their retail presence in Sydney and Melbourne.

“Nationally, we are seeing a real scarcity for quality luxury retail locations, with demand and enquiry levels from both domestic and international brands at extremely high levels,” said associate director of research at Colliers, Nik Potter.

Colliers Retail Leasing director Adam Lester said high-end brands were also gaining traction with younger shoppers, who are increasingly moving their spending from multiple fast fashion purchases towards less regular but higher quality purchasing.

“They prefer to hold off spending for a few months in order to save and purchase luxury goods,” Lester said.

The rise of two-speed consumption

The luxury brands’ rising fortune, despite a slowdown in retail spending, has left experts and economists pondering the multimillion-dollar question: who is still splashing their cash?

Analysts have begun looking at spending trends across different age groups and income levels, and the data suggests that households on the highest incomes still have plenty of cash to spend on luxury travel, holidays and clothing.

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According to a quarterly survey of consumers from investment bank UBS, those on more than $120,000 a year are still optimistic about their financial outlooks, with many bullish about how much income they’ll have over the next 12 months.

But consumers bringing home less than $48,000 a year are cutting back heavily on spending.

Quarterly spending data crunched by Commonwealth Bank and analytics firm Quantium this month also makes it clear that current cost pressures are weighing on some consumers, but not others.

While renters aged under 35 were feeling the most pressure, older Australians – particularly those who were already affluent and own their own homes – are largely insulated from soaring living costs.

CommBank iQ data shows consumers over the age of 35 increased their spending last quarter by an average of 7.7 per cent, which is above the annual inflation figure.

The over-35 demographic is increasing spends across discretionary categories, including on clothes and accessories. This group’s spending on apparel was up 3.1 per cent in the March quarter, while eating out was up 18 per cent compared with the same time last year.

This pattern of “two-speed consumption”, according to UBS, is creating clear winners and losers, even as the Reserve Bank of Australia pushes to contain inflation.

“The tight economy shines favourably on higher-income groups due to the wage gains they are experiencing and ownership of assets,” UBS analysts said.