The holiday season in the United States is witnessing a clear split in spending habits, driven by rising prices. According to The Wall Street Journal, households earning over $100,000 annually are set to increase their holiday spending, while lower-income Americans are tightening their belts due to higher costs for essentials like groceries and childcare.
Chris Peterson, CEO of Newell Brands, the company behind popular products like Sharpie pens and Graco strollers, highlighted the trend: \"We started to notice this trend where there was a real bifurcation in the market between the $50,000-and-below consumer in the U.S. market and the $100,000-and-above consumer.\" 📈
With the average annual income for an individual worker in the U.S. at $65,470 and the median wage at $48,060, there's a noticeable shift in consumer behavior. Newell Brands is responding by focusing more on premium products, such as blenders priced over $100, as interest in budget-friendly options under $20 declines.
Overall, U.S. consumers have spent 3.8% more between November 1 and December 24 compared to the same period last year, according to Mastercard SpendingPulse. However, this figure excludes auto sales and does not account for the post-Christmas shopping spree, a crucial period for retailers.
As high earners continue to drive holiday sales, businesses are adapting by enhancing their high-end offerings to cater to this segment, ensuring that the festive spirit remains strong despite economic challenges.
