"Americans are spending selectively. That's the picture painted by this quarter's earnings season, and it's not surprising. Consumer sentiment is at its lowest level since 2022, job cuts are rising sharply, and tariffs are making shopping trips more expensive. Lower-income shoppers aren't the only ones feeling the heat. Analysts say well-off consumers are also "trading down" on some purchases and switching up their shopping routines to get better deals."
""The consumer does not have enough spending power to lift all retailers. What we're seeing is polarization: Some retailers are doing well, while others are failing," Saunders said. "It is somewhat easier for those offering low prices to do well. But it's much wider than price - consumers want to feel they are buying well and getting bang for their buck," he said."
Consumer sentiment is at its lowest level since 2022, job cuts are rising sharply, and tariffs are increasing shopping costs. Lower-income shoppers face pressure, and well-off consumers are trading down on some purchases and changing shopping routines to find better deals. Shoppers are showing polarization: some retailers are thriving while others decline. Off-price retailers are performing strongly, with TJX reporting a 5% rise in same-store sales and Ross Stores reporting a 7% increase year over year. Walmart reported third-quarter revenue growth of 5.8% year over year and US same-store sales up 4.5%, reinforcing its value leadership.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]