An anticipated increase in holiday spending in the United States is expected to be driven predominantly by households earning over $100,000 annually, while lower-income Americans grapple with tighter budgets due to rising costs of essentials such as groceries and childcare, according to a report by The Wall Street Journal on Thursday.
Chris Peterson, Chief Executive of Newell Brands—makers of Sharpie pens, Graco strollers, and Oster kitchen appliances—highlighted a significant market split. “We started to notice this trend where there was a real bifurcation in the market between the 50,000 dollars-and-below consumer in the U.S. market and the 100,000 dollars-and-above consumer,” he told the newspaper.
In 2023, the average annual income for an individual worker in the U.S. was $65,470, with the median annual wage at $48,060, based on data from the U.S. Bureau of Labor Statistics.
Peterson explained that demand is stronger for premium products, such as blenders priced at $100 or more, while interest in entry-level options under $20 continues to decline. Consequently, Newell Brands is scaling back investments in its cheapest products and focusing on enhancing high-end offerings for consumers willing to spend more.
Overall, U.S. consumers spent 3.8 percent more between November 1 and December 24 compared to the same period last year, according to Mastercard SpendingPulse, which excludes auto sales. These figures do not account for the post-Christmas shopping period, a critical time for retailers.
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Deepening divide in U.S. holiday spending trends driven by high prices
cgtn.com
