Retailers targeting the United States’ middle and upper class recently saw their biggest sales decline in two years. US economy relies on consumption to fight recession, but wealthy Americans “black Friday“Low spending on the eve of peak shopping season is a worrying sign.
Bloomberg established an “Affluence Index” as an expenditure indicator for higher income groups. The index includes 30 major retailers from 10 sectors, including Apple, boutique operator Coach and high-end department store Nordstrom.
Bloomberg Second Measure Anonymous U.S. tracks theCredit CardFor debit and financial card transactions, it was found that the sales of businesses and brands receiving the Prosperity Index started to deteriorate in January and the situation has worsened recently. Sales of these companies declined by 70% from August to October and average sales fell by 14%, the worst performance in two years. Snowshoe maker Ugg is one of the few brands to resist the decline. Vouge magazine called Ugg the “coolest new shoe” earlier this year.
Brune, a senior economist at Morning Consult, a research firm, said that although interest rates have reached higher levels and inflation has surged, and the middle and upper classes have “promoted a much stronger spending boost than expected,” households are less. Incomes under $100,000 are now becoming more frugal.
Julie Robinson-Jasper, 54, has a family income of more than $100,000 a year, but she has started planning to cut back on holiday spending and Christmas gifts for her two children.BudgetThe upper limit is $600, the same as for the past three years, but after taking into account the increase in inflation, the purchasing power will be much lower. Now, to avoid high prices at restaurants, the family cooks at home and goes to second-hand markets to buy clothes. “If something happens again, like a layoff or an illness, I don’t want to be caught off guard,” she said.
Wealthy consumers have a huge influence on changes in consumer spending. These people have money to spend in good times, but when they are under pressure, they will cut back on spending faster than the rich. Businesses that specialize in this customer segment have suffered losses, indicating that the US economy may remain weak in the future.
finance (tagstotranslate) black friday